U.S. rig count jumps 20
Drilling activities continue to ramp up ahead of OPEC’s meeting November 30 as U.S. operators look to take advantage of improved oil prices and greater drilling efficiencies. The total number of rigs drilling in the country increased 20 to 588 for the week ended November 18, 2016, according to Baker Hughes Industries (ticker: BHI), with the majority of the gains in the Permian.
Baker Hughes’ data shows the number of rigs targeting oil increased 19 to a total of 471 while just one rig was added to the total number drilling for gas bringing the total to 116.
More than half the gains were in the Permian Basin this week, which remains the most active area for drilling in the country with 229 rigs, 11 more than last week. The second most active area is the Cana Woodford with just 40 active rigs.
Permian drilling activity exceeds 2015 levels
The rush of capital to the Permian Basin as companies look for the strongest returns has pushed activity in the region above levels seen in 2015. The price of U.S. crude oil benchmark WTI is also higher now than it was this time last year when a barrel was just $40.54. WTI today has been trading above $44 per barrel. The only other basin with more activity now than at the same time last year is the Cana Woodford, which has six more rigs than a year ago.
The white line marks WTI prices on this date last year.
The rest of the added rigs were dispersed throughout the U.S., with the Utica reporting three more, the DJ and Haynesville both reporting two additional rigs, and the Granite Wash and Mississippian adding one each to their totals. The Barnett, Marcellus and Williston each reported a loss of one rig week-over-week.
