U.S. Drilling Gains Momentum

WTI Climbs Above $100 as Supply Risks Grow
WTI crude climbed above $104 a barrel today before settling above $101, as concerns over global oil supply continue to build. The latest move follows attacks affecting Saudi Arabia’s East-West Pipeline, a critical route that allows Saudi crude to bypass the Strait of Hormuz, while continued instability across the region is keeping traders focused on how much oil can reliably reach the market.

What stands out to me is that this is becoming much more than speculation about what could happen. The market is dealing with real pressure on pipelines, shipping routes and refining capacity at the same time. When several pieces of the global energy system are under stress, the value of secure and dependable production becomes even more important.

Private Capital Expands Its Focus on Oil and Gas
I recently came across a story on OilPrice.com about wealthy investors moving more aggressively into oil and gas, and I think it says a lot about where the market is headed.

Family offices, hedge funds and major commodity traders are putting more capital into pipelines, export facilities and producing assets as they look beyond short-term oil prices and focus on the long-term value of energy. Growing global demand, AI-driven power needs and continued supply concerns are all contributing to that shift.

The market is getting more competitive too, with oil and gas M&A activity picking up and firms like Gunvor, Citadel and Vitol pursuing physical U.S. energy assets. Family offices are also finding opportunities in smaller producing and non-operated properties that may be too small for the major operators but can still offer meaningful value.

What stood out to me is that more sophisticated investors are treating oil and gas as more than a commodity trade. They are looking at energy as a long-term asset class built around real production, infrastructure and the ability to create value over time.

U.S. Drilling Activity Builds Momentum
U.S. drilling activity is showing some momentum again, with Baker Hughes reporting that oil and gas rigs increased for the fifth straight week, the longest stretch of gains since early 2025.

The total rig count climbed to 558, while oil rigs jumped by 10 to 425, the biggest weekly increase since February 2023. Texas led the move, adding 10 rigs and reaching its highest count since July 2025.

What catches my attention is the timing. After several years of lower rig activity and a stronger focus on capital discipline, higher oil prices and tighter global supply conditions are beginning to support more drilling. The EIA now expects U.S. crude production to rise to 13.7 million barrels per day in 2026, with natural gas production also moving higher.

We are not seeing a return to unchecked growth, but we are seeing operators respond to a stronger price environment, and that is an important shift to watch.