Shale drilling climbs most in a month as Biden calls for more oil

Shale explorers returned to growth mode this week, adding the most rigs in a month as the Biden administration calls on them to unleash more crude to offset a ban on Russian oil.

The number of rigs drilling for crude in the US rose by 8 to 527 this week, the biggest gain since February 11, according to Baker Hughes Co. data. Most of the expansion, which follows last week's drop of three oil rigs, came in the world's busiest shale patch, the Permian Basin of West Texas and New Mexico.

President Joe Biden has urged US oil companies to step up production as sanctions on Russia have helped push oil prices above $100 a barrel. West Texas Intermediate crude, which was already rallying before the war, is now 66% up since early November.


The plea for more production collides with commitments that major shale explorers have made to prioritise financial discipline over growth, though, and many are wary given Biden's historic hostility toward fossil fuels and the risk that new drilling won't pay off over the long term.