U.S. activity declines again; Canada increases
Drilling activity declined this week as oil and gas operators continue to seek equilibrium, according to Baker Hughes Weekly Rig Count.
The total number of rigs active in the U.S. dropped by eight, meaning there are now 928 rigs operational. Six land-based rigs shut down, while two offshore rigs came offline. There are now 907 land, one inland waters and 20 offshore rigs operating.
Five oil-targeting rigs came offline, while two gas-targeting rigs shut down. In addition, the lone “miscellaneous” rig ceased activity. Currently, 743 oil-targeting and 185 gas-targeting rigs are active, giving an oil/gas split of 80.1% and 19.9%.
Horizontal drilling saw the largest decline this week, with six rigs shutting down. Vertical rigs also saw decreases, as two such rigs came offline. Directional rigs were unchanged, and now outnumber vertical rigs by 16, the second-highest margin ever recorded.
Decreases in activity were concentrated in the most popular states this week, as Texas and Oklahoma had the largest drops in rig count. Four Texan rigs shut down, while three rigs in Oklahoma ceased activity. Two rigs shut down in California, and one came offline in Louisiana and West Virginia. One rig started activity in Alaska, Pennsylvania, North Dakota and Kansas. This rig, a vertical oil rig targeting the Mississippian on the border with Oklahoma, is the first rig operational in Kansas in 2017.
Barnett drilling dropped 50%
Basins in Texas saw the largest decrease this week, with six rigs in the Eagle Ford and four rigs in the Barnett shutting down. Activity in the Barnett dropped by 50% this week, and only four rigs remain operational. Smaller changes were seen in the DJ-Niobrara and Granite Wash, where one rig shut down, and in the Mississippian, Permian and Williston, where one came online.
Unlike in the U.S., Canadian drilling activity increased this week. Three rigs began drilling for gas, giving Canada a total of 100 gas-targeting rigs and 112 oil-targeting rigs.
