Despite being halved in the past year, the Permian Basin’s rig count heads the upswing with more rigs than any other US region.
It’s been a rough year for rig counts in every shale play across the country, and the Permian Basin has been no exception. In the past 12 months, capped August 7 2015, the Basin suffered a loss of rigs, accounting for more than half of its oil and gas rigs.
Despite the heavy toll of the global oil slump, Market Realist reports that, of the 670 US rigs in operation, Baker Hughes found that Permian Basin is home to 252—a staggering number compared to the 79 rigs in the Eagle Ford Shale and 72 in the Williston Basin.
The Basin’s sharp decline in rig counts, and thus dwindling drilling activity, is likely to weigh down production growth. There is hope, however, that if growth in Permian rig counts continues its pattern, production growth will follow suit.
Laredo Petroleum, and upstream producer within the Basin, accounts for 1 percent of the SPDR S&P Oil and Gas Exploration and Production while Whiting Petroleum, another upstream producer, makes up 0.27 percent of iShares U.S. Energy ETF.