US Oil Weekly Update: Trump Undermines Global Energy Industry

The US President Donald Trump is on a tariff-spree, throwing out tariffs left and right. His end goal is to bring factories back to the United States at the very cost of the industry he promised to help grow to ensure American energy security.

Higher cost of drilling and lower oil price sits in stark contrast to Donald Trumps Drill-Baby-Drill mantra of his presidential campaign. Several operators in the prolific Permian basin are cutting investments and see lower than expected activity in the region.

Total active rigs in the US are currently at 584 rigs, 21 rigs less than 12 months ago. 20 fewer active oilrigs and 1 less gas focused rig than a year ago.

US production is declining as well as commercial inventory. Lower activity in the US could play a major factor in future US production.

Figure 1. West Texas Intermediate the Last Five Days.

US Crude inventories and production.

US commercial crude oil inventories decreased by 2 million barrels in the week ending May 2, with market forecasters predicting between 1 and 1.5 million barrel-decrease in crude stocks. U.S. commercial crude oil inventories are about 7 percent below the five-year average for this time of year and 21.2 million barrels lower than a year ago. U.S. crude oil refinery inputs averaged 16.071 million barrels per day during the week ending May 2, 2025, 7000 bpd less compared to the previous week`s average. Refineries operated at 89 percent of their operable capacity last week.

Figure 2. US Crude Stocks including SPR at 837.5 million Barrels.

Figure 3. US Crude Stocks Excluding SPR at 438.4 million Barrels.

US Rig Activity.

The total number of active rigs operating in the US according to Baker Hughes rig count decreased by three last week, currently at 584. Oil focused rigs decreased by four last week, at 479 active rigs. Gas focused rigs increased by two, now at 101 active rigs. Miscellaneous decreased by one last week now at four active rigs.

Figure 4. Active Oil Focused Rigs Decreased by Four Last Week now at 479

Figure 5. Gas Focused Rigs Increased from 99 to 101 Active Rigs.

Figure 6. Total Active Rigs in the U.S. Decreased by Three Last Week, now at 584.

Figure 7. Rig Count in Major Basins.

Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Baker Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975. The North American rig count is released weekly at noon Central Time on the last day of the work week.

By the Numbers May 7, 2025.

Disclaimer

This report is under no circumstances intended to be used for or considered as investment advice. This report is to be used as information and general market guidance. The author, GE Briefings and Investornytt cannot guarantee that the information from sources is without incentives, but the author has taken considerable care to ensure that, and to the best of his knowledge, material information contained in the report is in accordance with the facts and contains no omission likely to affect its understanding. Please note that this report is the author’s own research, opinions and conclusions, and the readers are recommended to draw their own conclusions based on other sources than this report, the facts and market picture can change in an instant and therefore the reader must do their own due diligence. The author, GE Briefings and Investornytt cannot be held responsible for the readers investments based on this report.

En vandrelysten finansnerd med tydelige spor av graphomania og bibliofili i blodet. Hans første møte med markedet bortsett fra noen kornete aksjekurser på 28" tekst TV, var igjennom Odin fondene i 2000 – 2001. Der diversifiserte han pengene ut på ODIN Offshore, ODIN Norden og ODIN Finland, helt tilfeldig. Etter å først dyppet stortåen forsiktig ned i vannet ble han etter hvert hektet. I 2002 gjorde han sin første handel i en enkeltaksje, Selskapet hadde ticker symbolet, STL- eller Statoil på folkemunne. Der kastet han alle kortene i panikk etter en liten korreksjon noen måneder senere, han elsket det! Nå kombinerer han sine to hobbyer, skriving og finans og smelter dem sammen til en lidenskap.