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The Baker Hughes rig count for January 12, 2018 showed a total increase of 15 rigs exploring for oil and gas. Oil prices are also up, hovering around $64 for WTI. Photo: Ralph Kelley.

Rig count drops by 5

The Baker Hughes North America Rotary Rig Count dropped by 5 last week, with the largest overall dips in Texas. The Permian Basin lost 2 of its rigs, while the Eagle Ford lost 3. In total, Texas lost 7 rigs, while Louisiana lost 1. Interestingly, all the rigs lost were exploring for gas. The oil rig count actually increased by 3. The total overall count, then, was 949 on Friday, down 5 from the previous week. One rig was added offshore.

According to 24/7 Wall Street, “The decline in rigs drilling for natural gas reflects the industry’s rather better effort at reducing production in an effort to lift prices. The natural gas injection season runs through the end of October, and the total in storage to date is below the total at the same time last year.”

24/7 noted that U.S. producers, particularly those in the country’s shale plays, generally expect to reduce capital spending a bit in the second half of this year as prices remain below $50 a barrel.

Here are the numbers by basin, according to Baker Hughes:

Basin This week Variance
Ardmore Woodford 1 0
Arkoma Woodford 8 -2
Barnett 7 0
Cana Woodford 63 3
DJ-Niobrara 30 0
Eagle Ford 75 -3
Fayetteville 1 0
Granite Wash 15 0
Haynesville 45 0
Marcellus 46 0
Mississippian 7 0
Permian 377 -2
Utica 29 0
Williston 53 0

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