RIG COUNT INCREASES 21 THIS WEEK TO 789; OKLAHOMA UP 10
Friday’s Baker Hughes rig report revealed that the number of active U.S. rigs drilling for oil continued the streak of increases that began in mid-January and now rests at 9 weeks in a row, but the report falls on the heels of the first weekly decline for domestic crude stockpiles in 10 weeks.
Crude traded in a narrow band this week, with Brent and West Texas Intermediate bouncing in a $2.50 range as investors weighed the impact of the first oil cut from the Organization of the Petroleum Exporting Countries in eight years against rising U.S. shale oil output and high inventories.
The oil rig count jumped 14 rigs to 631 overall, while the natural gas rig count rose by six to 157 and one miscellaneous rig was added.
The overall U.S. rig count now sits at 789, up 313 rigs from this time last year when the count stood at 476. Oil rigs are up 244 and natural gas rigs are up 68 in the past year.
The big jump in activity comes after oil prices fell early last week, at one point settling below $48 per barrel from it’s $53 a barrel mark a few days earlier.
West Texas’ Permian Basin for the first time in months saw a net decrease in rigs week-over-week with the loss of one unit, while the Williston Basin of Montana and North Dakota saw the greatest activity increase, adding four rigs in the past week. South Texas’ Eagle Ford Shale also saw a modest increase of two rigs.
Reeves County in the Delaware sub-basin had the most activity of any county in the Permian, adding two rigs for a total of 49. Midland County dropped out of the 40 rig club after falling to 39, down one.
Other counties with double-digit rig counts were Loving (28); Eddy, New Mexico (19); Lea, New Mexico (19); Martin (19); Howard (17); Upton (15); and Culberson (13).
Oklahoma increased by 10 rigs, North Dakota added five, Texas gained four, Colorado and Utah were each up two, and Alaska gained one.
Wyoming lost two. Louisiana and New Mexico dropped one each.
Arkansas, California, Kansas, Ohio, Pennsylvania and West Virginia were all unchanged.
OKLAHOMA SUMMARY – 111 Rigs – Plus 10
The state count jumped to 111 rigs running, an increase of 10 rigs over last week’s count of 101 rigs. The count is up from the low of 54 in February 2016. Oklahoma’s Cana Woodford play — which includes the STACK and SCOOP fields — dropped one rig to 48. The Ardmore Woodford has 2 rigs while the Arkoma Woodford added 3 and now has 9 rigs running.
By county, Carter and Stephens lost one rig each while Blaine lost two rigs. The gain in rigs was spread across multiple counties, with Dewey and Johnston gaining one rig each and Roger Mills gained two rigs. The big jump came in Garfield, Hughes, Kingfisher, and Major Counties, as they all climbed by three rigs each.
Check out our proprietary and interactive Rig Count Dashboard.
CLICK HERE TO SUBSCRIBE TO OUR WEEKLY OIL AND GAS INDUSTRY NEWSLETTER DELIVERED DIRECTLY TO YOUR INBOX FROM OKLAHOMAMINERALS.COM
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. ☞Email:email@example.com