The US oil-rig count increased by nine to 697 this week, according to Baker Hughes.
The E&P’s continue to take advantage of higher oil prices. Oil field service giants Schlumberger and Halliburton this week reported first-quarter earnings that showed stronger demand. As a whole, the energy sector is expected to be the biggest contributor to year-over-year S&P 500 earnings growth.
The U.S. added 13 rigs actively drilling for oil and gas this week and almost all of them came in Texas. The Lone Star state added 11 rigs, including five in the Eagle Ford. The Permian added two rigs, while the Haynesville Shale in East Texas tacked on one more rig. Gas rigs increased by four to 171. With miscellaneous rigs unchanged at two, the total rig count rose by 13 to 870.
Oklahoma crude oil prices as of 5 p.m. Friday:
Sunoco Inc. — $45.75
Sunoco Inc. — $33.75
The Permian now accounts for 342 rigs, which is nearly 50 percent of all the nation’s oil rigs. In 2017 alone, the Permian has put into play 75 additional rigs, for a gain of 28%. The next most active area is Texas’ Eagle Ford shale with 83 rigs. Texas is home to 437 rigs overall, more than half of the nation’s total, while Oklahoma is second with 127 rigs.
OKLAHOMA SUMMARY – 127 Rigs – Plus 3
The state count has 127 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 — increased 4 to 55. The Ardmore Woodford has 2 rigs while the Arkoma Woodford remains at 10 rigs running.
The state has 2 directional rigs, 123 HZ rigs and 2 vertical rigs drilling.
By county, 4 counties currently have double-digit HZ rigs running, Blaine (22), Canadian (10), Grady (14), and Kingfisher (19).
Alfalfa, Dewey, Garvin and Stephens Counties all went down by 1 HZ rig each.
Counties on the upswing this week were Caddo, which moved up 1 HZ rig. McClain County gained 2 HZ rigs while Grady County tacked on 4 new HZ rigs.
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.