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Baker Hughes data show U.S. oil-rig count now down for a third straight week
Permian rig counts fell to 485, down by one from 486 last week, as pipeline constraints limited new production potential. Permian rigs are now comfortably back in the well-worn mid-480s range they have held since early August.
The Permian currently has 3.5 million-3.6 million b/d of takeaway capacity. Production in the basin is expected to reach 3.43 million b/d during September and edge up to 3.46 million b/d during October, according to US Energy Information Administration data.
The decline comes even as the long-term takeaway picture brightened this week.
The average U.S. rig count for September 2018 was 1,053, up 3 from the 1,050 counted in August 2018, and up 113 from the 940 counted in September 2017.
Weekly Summary: Total rigs engaged in the exploration and production in the U.S. lost 2 for the week ended October 5, 2018, down to 1052. Land rigs were down 3 to 1026. The offshore rig count gained 3 to 23. Rigs drilling in the inland waters dropped by 2 to 3.
Oil Rig Count: The US crude oil rig count fell -2 from 863 down to 861 for the week. There are 113 more rigs targeting oil than last year. Rigs drilling for oil represent 81.8 percent of all drilling activity.
US oil rigs tested an all-time high of 1,609 in October 2014. In contrast, the rigs hit 316 in May 2016—the lowest level since the 1940s.
Natural Gas Rig Count: The natural gas rig count – which plunged to its lowest in August of 2017 – stayed flat at 189. The number of rigs drilling for gas is 2 rigs higher than last years count.
AMONG MAJOR OIL- AND GAS-PRODUCING STATES:
Oklahoma and New Mexico saw the largest increase in rigs for the week, each with a 2-unit gain to reach 143 and 99, respectively.
Six states were unchanged this week, namely Louisiana, 62; Wyoming, 29; Ohio, 18; West Virginia, 13; California, 13; and Utah, 6.
Texas dropped the most rigs, ending the week down 5 units to 524. North Dakota, 52; Colorado, 32; and Alaska, 5; each dropped a single unit.
Summary of Major Plays – Ranked By Rig Count
– Permian Basin 485 rigs compared to last week’s 486 rigs
– Eagle Ford 78 rigs compared to last week’s 79 rigs
– Cana Woodford 66 rigs compared to last week’s 67 rigs
– Williston 52 rigs compared to last week’s 53 rigs
– Marcellus 56 rigs compared to last week’s 55 rigs
– Haynesville 50 rigs compared to last week’s 50 rigs
– DJ-Niobrara 27 rigs compared to last week’s 28 rigs
– Utica 20 rigs compared to last week’s 20 rigs
– Granite Wash 13 rigs compared to last week’s 13 rigs
– Arkoma Woodford 7 rigs compared to last week’s 7 rigs
For more details on the latest national and state news regarding last Friday’s Baker Hughes rig count data, check out the interactive rig count dashboard on the Oklahoma Index tab of our website.
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.
SOURCE: Baker Hughes