The Baker Hughes rotary rig count hasn’t produced many smiles as of late, with a drop in in the total U.S. rig count for the past few weeks. Last Friday, September 15, showed a total decrease of 8 rigs exploring for oil and gas, bringing the current overall count in the U.S. to 936. The decrease included a loss of 8 rigs on land and 1 in inland waters. Offshore, one rig was added for a net loss of 8 rigs total.
Of those rigs exploring, the number indicates a loss of 7 rigs exploring for oil and one rig exploring for gas.
By state, West Virginia saw the only increase, adding one rig for a total of 16. Louisiana and Texas each lost 3. Colorado, New Mexico and North Dakota lost one rig each. The major basin variances are shown in the chart below.
|Major Basin Variances||This Week||+/-||Last Week||+/-||Year Ago|
While the rig counts overall show decreases in most areas, one thing to remember is that the number is still significantly higher than last year at this time. The Permian Basin, for example, has seen huge growth in the past year, up 202 rigs over last year.
Production, on the other hand, is still strong, indicating a still profitable environment. While production in the Bakken is still below the 2014 highs, it has continued to remain steady at over 1,000 barrels per day. Permian production continues to rise, and production there is predicted to rise by 55 barrels per day for oil, and 158 million cubic feet per day for natural gas. The September 2017 EIA Drilling Productivity Report showed a projected increase of oil production in the Bakken by 12 barrels per day. This emphasizes the efficiency of current drilling practices. Production continues remain steady despite the drop in rig count.
To read the EIA’s entire report, visit their website.
For the entire Baker Hughes rig count report from Friday September 15, 2017, click here.