Diamondback Energy, one of the largest US shale producers, expects drillers to add as many as 30 new rigs to the Permian Basin by year-end, representing roughly a 10% increase in activity in America's most prolific oil field. The forecast reflects growing confidence among producers that higher crude prices are here to stay.

Geopolitical tensions surrounding the Iran conflict have pushed oil prices sharply higher in recent weeks, making previously marginal Permian projects economically viable again. The Permian Basin spans West Texas and southeastern New Mexico and accounts for roughly half of US crude production.

The rig expansion would mark a significant reversal from the cautious approach many producers have maintained since the 2020 price crash. Diamondback's outlook suggests operators see the current price environment as sustainable enough to justify increased capital spending.

Diamondback Energy is a major Permian-focused producer with significant acreage in the Midland Basin, positioning it to directly benefit from any sustained price rally.