Total U.S. rig count up by 11 to 947
Drilling activity in the U.S. increased sharply this week, as producers continue to respond to rising prices, according to Baker Hughes’ Weekly Rig Count.
A total of 11 rigs began operations this week, bringing the U.S. total to 947. Rig counts are approaching the July 2017 high of 952, the peak of post-downturn operations. Thirteen land-based rigs came online, while two offshore rigs shut down. There are now 929 land, one inland waters and 17 offshore rigs active in the U.S.
Operations heavily shifted in favor of oil this week, with 12 oil-targeting rigs coming online. One gas-targeting rig shut down this week. Oil targets now make up 80.1% of operations, as 759 rigs target oil while 188 rigs target gas.
Drilling activity shifted away from directional operations this week, as four directional rigs came offline. Six horizontal and nine vertical rigs began operations this week, bringing the total directional, horizontal and vertical rigs to 73, 808, and 66, respectively.
13 new rigs in Texas, 18 in Permian
Activity streamed into Texas this week, as thirteen rigs began operations in the state this week. Significant increases were also seen in West Virginia and New Mexico, which added 4 and 3, respectively. One rig shut down in Utah and Ohio, while three came offline in Louisiana and four shut down in Oklahoma.
The Permian asserted itself as the premier oil and gas basin this week, adding 18 rigs. This is tied as the largest single-basin increase since at least 2011, when Baker began tracking individual basin activity. This jump is matched only by the Permian in early November 2013.While rigs in a single basin have never grown by more than 18 in a week, operations can drop off much more sharply. In February 2015, during the heart of the downturn, 49 Permian rigs shut down in a single month. With 427 active rigs, the Permian makes up 45% of all U.S. operations, the highest single-basin proportion since at least 2011.
Activity also increased in the Marcellus and Granite Wash, which added four and one rig, respectively. Most other major basins tracked by Baker saw slight decreases this week, as the Barnett, Eagle Ford, Haynesville, Mississippian and Utica each saw one rig shut down.
