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Led by decline in Oklahoma, U.S. rig count falls again; Texas adds one
SOURCES: Baker Hughes and Reuters
Led by another weekly loss in Oklahoma, the number of U.S. rigs drilling for oil and natural gas continued to slide in the past week, pushing totals to their lowest in 18 months. Texas gained one.
In its weekly report Friday, Baker Hughes said the nationwide combined count finished the week down four, to 942. That was 102 less than the same week a year ago.
The rig count, an early indicator of future output, has declined over the past eight months as independent exploration and production companies cut spending on new drilling as they focus more on earnings growth instead of increased output.
Oil prices, which had taken a beating a day earlier when President Trump’s latest threat of additional tariffs on China goods added to concerns of economic slowdown, rebounded a bit Friday. The gains were a reaction both to declining crude inventories in the U.S. and hope for further declines with fewer rigs at work.
Benchmark U.S. crude gained 3.2 percent to close at $55.66 per barrel in New York. It wasn’t enough to erase Thursday’s 8 percent loss, and the contract finished the week down 1 percent.
Brent, the international benchmark, gained 2.3 percent to close at $61.89 in London, still down more than 2 percent for the week.
Total rigs engaged in the exploration and production in the U.S. declined further for the week ended August 2, 2019, down another 4 rigs to 942. Land rigs lost 3, down to 918. The offshore rig count declined 1 rig, with 24 rigs now running. Rigs drilling in the inland waters remained flat at ZERO.
Oil Rig Count:
The US crude oil rig count fell back by another 6 rigs, from 776 to 770 for the week. There are 89 fewer rigs targeting oil than last year. Rigs drilling for oil represent 81.7 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 – increased by 2 rigs up to 171. The number of rigs drilling for gas is 12 rigs fewer than last years count.
AMONG MAJOR OIL- AND GAS-PRODUCING STATES:
Alaska gained 3 new rigs, while Texas picked up 1 rig
TEN states were unchanged, namely Arkansas, California, Colorado, Kansas, North Dakota, Ohio, Pennsylvania, Utah, West Virginia, and Wyoming.
Oklahoma lost 5 rigs, New Mexico was down 2, and Louisiana lost 1 rig.
Summary of Major Plays – Ranked By Rig Count
– Permian Basin 442 rigs compared to last week’s 443 rigs
– Eagle Ford 66 rigs compared to last week’s 66 rigs
– Cana Woodford 48 rigs compared to last week’s 49 rigs
– Williston 47 rigs compared to last week’s 47 rigs
– Marcellus 56 rigs compared to last week’s 56 rigs
– Haynesville 52 rigs compared to last week’s 51 rigs
– DJ-Niobrara 29 rigs compared to last week’s 29 rigs
– Utica 15 rigs compared to last week’s 15 rigs
– Granite Wash 2 rigs compared to last week’s 4 rigs
– Ardmore Woodford 5 rigs compared to last week’s 5 rigs
– Arkoma Woodford 3 rigs compared to last week’s 3 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.
SOURCES: Baker Hughes and Reuters