The U.S. added 14 more rigs to its active fleet this week
The active rig count in the United States continued to climb this week as oil prices remained above $50 per barrel. The majority of the new activity came from the Permian Basin this week where capital has been flooding as operators look for the most profitable margins. Baker Hughes Industries (ticker: BHI) reported 14 more rigs this week, for a total of 553, 11 of which were in the Permian.
The Permian, and the Delaware Basin in particular, have become an increasingly attractive target for oil and gas companies as oil prices appear to begin to recover, or at least seem to like the $50 level. Just in the last month, there have been over $2 billion in deals in the Permian.
On September 27, Sunoco Logistics (ticker: SXL) purchased energy trader Vitol Group crude oil gathering system in the basin for $760 million. Eight days later, Resolute Energy (ticker: REN) purchased 3,293 acres of oil and gas properties for $135 million, and last week RSP Permian (ticker: RSPP) announced a $1.4 billion deal to acquire Silver Hill Energy Partners.
Of the 14 additional rigs reported this week, 11 were targeting oil while three were drilling for natural gas. The Eagle Ford also reported additional rigs this week, adding two to its count. The Haynesville and the Mississippian each reported one additional rig as well. The only basin to report fewer rigs this week was the DJ, which lost one rig, according to Baker Hughes.
