Alaska activity up 80%

Drilling activity in the U.S. was flat this week, holding steady at the highest rig count in three years according to Baker Hughes.

The total number of rigs operating in the country was unchanged at 975, though specific subsets saw significant changes. One land and inland waters rig shut down, while two offshore rigs became active. There is now only one inland waters rig operational in the entire U.S., in the swamps of Louisiana. A total of 956 land and 18 offshore rigs are also drilling.

Drilling activity shifted in favor of oil once again, with seven oil-targeting rigs coming online. Seven gas-targeting rigs shut down, leaving 798 oil and 177 gas rigs operational. Oil targets now make up 81.8% of all drilling activity, the highest share since August 2016.

Horizontal activity also gained ground this week, with seven horizontal rigs becoming active. Five vertical and two directional rigs came offline, meaning there are now 839 horizontal, 65 vertical and 71 directional rigs drilling in the country.

Permian down by four, minor basins up by five

While the overall U.S. rig count was flat, most major states saw rig counts change. Activity in Alaska increased significantly, with four rigs coming online in the week. This represents growth of 80%, as last week the state had five active rigs. Oklahoma added five rigs this week, while Pennsylvania added three. One rig shut down in Colorado and North Dakota, while two shut down in Louisiana, Ohio and West Virginia. Three drilling rigs came offline in New Mexico, as activity in the Permian decreased.

Operations shifted away from the most popular basins this week, as “other basins,” those too small for Baker to track individually, added five rigs. Activity in the Permian fell this week, with four rigs coming offline. Activity also dropped in the Utica, where two rigs shut down, and the Ardmore Woodford, Arkoma Woodford, DJ-Niobrara, and Williston, which each saw one come offline. Some basins saw increases, though, with one rig coming online in the Cana Woodford, Eagle Ford, Granite Wash, Marcellus and Mississippian.

Rig Count Holds at 975:  Highest Point Since April 2015

Source: Baker Hughes


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