U.S. Drilling Activity Has Risen 60% In One Year

One of the latest lines of attack in the finger-pointing over rising gasoline prices goes like this: U.S. oil companies are sitting on a huge number of permits, content to reap enormous profits while they refuse to drill for oil. This is mostly false, but with a kernel of truth that is never taken in context.

So let’s discuss what’s really happening. The truth is that the number of rigs drilling for oil in the U.S. is steadily climbing. The year-over-year increase in the Baker Hughes North America Rig Count is now about 60%. In fact,…