The combined count of crude oil, natural gas, and miscellaneous rigs in the US dropped by one to 587 in the week ending July 24, according to data from Baker Hughes (BKR) released Friday.
The US oil rig count dropped by two from 452 the previous week to 450, while the number of gas rigs increased by one from 126 the previous week to 127, the data showed.
Price: $57.78, Change: $+1.69, Percent Change: +3.01%
US President Donald Trump said Thursday that over 220 organizations have joined the Ratepayer Protection Pledge to keep AI-related electricity costs off consumers.Trump said that after he introduced the plan a few months ago, "more than 220 utilities, tech companies, state governments, and other partners have signed our Ratepayer Protection Pledge."The US President said rising electricity demand from artificial intelligence should not burden households, with large technology companies instead funding the required power infrastructure."America's largest tech companies have formally committed to fund or build all energy infrastructure required to meet the demand they are placing on the grid," Trump added.Trump said the administration will let technology companies build their own power plants for data centers. He added the facilities will feed excess electricity into the grid, "... so we'll actually end up with more electricity," he said.Trump said the pledge now helps keep electricity prices in check across utilities responsible for about 80% of US power distribution. "We have kept rates down, way down," he said.American Electric Power estimates its data center contracts will generate as much as $16 billion in consumer cost offsets, Trump said, citing the agreements as evidence that technology investments can reduce costs for households.Trump said several new power plants will begin operating over the next two years, expanding electricity supplies to meet growing demand from artificial intelligence and other industries.He also highlighted commitments from utilities participating in the initiative, saying Georgia Power has frozen residential base rates through 2029, which he cited as an example of protecting consumers from higher electricity bills."AI is probably the biggest thing anybody's ever seen, and whoever wins that race is probably going to win," Trump said, arguing the US must expand power generation to stay ahead of China.Trump criticized regions facing recurring brownouts and blackouts, saying they cannot support surging electricity demand.He said the Ratepayer Protection Pledge will expand generating capacity while requiring major technology companies to finance their own energy needs.
US refiners are importing the most Venezuelan crude in almost a decade, with July imports expected to average about 804,000 barrels per day, the highest since 2017, after the US lifted sanctions earlier this year, Bloomberg reported on Thursday.Refiners along the US Gulf Coast are increasing purchases of Venezuelan crude as a hedge against potential Canadian oil sands supply disruptions, as hot and dry weather raises the risk of wildfires. Canadian heavy crude is similar in quality to Venezuelan grades.US refiners are benefiting from some of the strongest profit margins in years, supported by relatively low fuel inventories and geopolitical supply disruptions. Last week, the US Gulf Coast 3-2-1 crack spread reached its highest level since at least 2012.Growing US demand has also strengthened the Gulf Coast market for Venezuelan crude. Discounts for the heavy grade have narrowed to about $10 per barrel below ICE Brent from roughly $15/bbl in May, offsetting weaker Chinese demand, which has fallen significantly this year.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Ovintiv (OVV) reported Q2 earnings Thursday, showing total production of 614,600 barrels of oil equivalent per day, compared with 615,300 boe/d a year earlier.Oil production dropped to 123,000 b/d for the quarter ended June 30, down from 142,000 b/d a year earlier, the company said.Natural gas production rose to 1,959 million cubic feet per day for the quarter ended June 30, up from 1,851 MMcf/d in the year-ago period.Oil and plant condensate production edged down to 205,800 b/d, compared with 211,200 b/d.Plant condensate output increased to 82,800 b/d, up from 69,200 b/d for the same quarter last year, while other natural gas liquids production declined to 82,400 b/d, down from 95,500 b/d a year earlier.Total liquids production fell to 288,200 b/d from 306,700 b/d in the year-ago quarter, according to the company.Ovintiv raised its full-year 2026 production outlook to 630,000 boe/d to 645,000 boe/d while keeping planned capital investment unchanged at $2.25 billion to $2.35 billion.The full year guidance includes 210,000 b/d to 212,000 b/d of oil and condensate, 83,000 b/d to 85,000 b/d of natural gas liquids and 2.025 Bcf/d to 2.075 Bcf/d of natural gas.In the Permian, Ovintiv produced 231,000 boe/d in Q2, with liquids accounting for 78% of volumes, and turned 38 net wells in line. The company plans to bring 125 to 135 net wells online.Montney production averaged 374,000 boe/d in the second quarter, with liquids making up 27% of output, while the company turned 40 net wells in line. Ovintiv plans to bring 130 to 140 net wells online this year.