Eleven in a row as oil rises
On Wednesday, the Energy Information Administration said U.S. crude stockpiles only rose by 867,000 barrels last week vs. the 2 million barrels that analysts expected, and gasoline stockpiles fell by 3.7 million barrels, lifting crude prices. But production rose to 9.147 million barrels per day, the highest since February 2016.
Oil prices could receive some support as OPEC and top non-OPEC producers consider extending their agreement to reduce output by 1.8 million barrels per day past its expiration in June.
Meanwhile, the U.S. rig count grew again, marking the 11th consecutive weekly gain and adding to concerns that growing U.S. production would cancel out any OPEC production cuts.
The total U.S. rig count rose by another by 15 to 824, and adding to last week’s gain of 20, as reported in the latest Baker Hughes survey.
Oil rigs rose by 10 to 662 while natural gas rigs gained 5 to 160 and two rigs are miscellaneous.
Total rigs are up by 374 (+83%) from a year ago, with oil rigs higher by 300 (+83%) and gas rigs up by 72 (+82%).
State & Basin Summary
Texas increased by seven rigs and Louisiana added six. Alaska rose by three while New Mexico gained two.
Colorado declined by two. North Dakota and Utah were off one each.
Arkansas, California, Kansas, Ohio, Oklahoma, Pennsylvania, West Virginia and Wyoming were all unchanged.
The Permian Basin saw the most number of rigs added again this week, bringing 4 additional rigs online after adding 7 last week, now at 319 versus only 145 rigs a year ago. Cana Woodford and DJ-Niobrara each lost two rigs, while Eagle Ford, Granite Wash, and Haynesville all added a rig.
Reeves County hits 50 rigs for first time in over 2 years
The last time Reeves County recorded a rig count in the 50s was Jan. 30, 2015. Just over two years later, it’s reached it again.
Baker Hughes reported Reeves had 50 rigs even this week, the most of any county in the Permian Basin. Reeves has been a hotbed of not only drilling activity and acquisitions.
While Reeves leads in the Delaware subbasin, Midland County topped the Midland subbasin after holding steady at 36 rigs. In total, there are 319 rigs in the Permian, up four.
Other double-digit counties were Loving (28); Eddy, New Mexico (24); Lea, New Mexico (23); Howard (22); Martin (20); Upton (17); Culberson (14); and Pecos (10).
Counties with renewed activity were Cochran and Hockley.
OKLAHOMA SUMMARY – 118 Rigs – No Change
The state count remained unchanged with 118 rigs running. The count is up from the low of 54 in February 2016. Oklahoma’s Cana Woodford play — which includes the STACK and SCOOP fields — lost 2 rigs to fall back at 48. The Ardmore Woodford has 2 rigs while the Arkoma Woodford has 9 rigs running.
By county, 3 counties currently have double-digit HZ rigs running, Blaine (23), Grady (10) and Kingfisher (19).
Alfalfa and Coal Counties lost 1 rig each while Blaine County went down by 3.
Counties on the upswing this week were Canadian, Garvin, Kingfisher, Major, and Pittsburg, all which moved up 1 rig each.
Check out our proprietary and interactive Rig Count Dashboard.
Compiled and Published by GIB KNIGHT
Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma.