Activity continues to hover near 1,050 rigs

Drilling activity increased in the U.S. this week partially reversing last week’s decline according to the latest edition of Baker Hughes Rig Count.

A net four rigs began drilling this week, bringing the national total to 1,048 active rigs. Three new rigs were land based, while one is inland waters. Offshore rigs were unchanged, so there are now 1,028 land, two inland waters and 18 offshore rigs drilling.

Rig counts appear to have reached something of an equilibrium around 1,050 rigs. The past 17 weeks have seen little overall change, with activity levels bouncing between about 1,040 and 1,060 active rigs. Individual weeks may show significant changes, like the 13 rigs that came online in early August, but these are not sustained, as 13 rigs shut down last week.

Rig Count Rises Moderately on Mississippi Growth

Source: EnerCom Analytics

The gains in rig counts were distributed evenly among oil and gas-targeting rigs, as two of each came online. There are currently 862 oil-targeting, 184 gas and two miscellaneous rigs active in the U.S.

Operations shifted away from shale drilling, as two horizontal rigs shut down this week. Three directional and vertical rigs came online, meaning there are now 95 directional, 917 horizontal and 66 vertical rigs drilling.

Unusually, Mississippi showed the largest growth in rig count among individual states this week, adding three rigs. This is the first time since at least 2000 that the increase in Mississippi rigs was the largest growth in rig count among any U.S. state for the week. One rig also came online in Kansas, Louisiana and Pennsylvania, while one shut down in New Mexico and Oklahoma.

Like in several recent weeks, minor basins not tracked individually by Baker showed the largest growth in activity this week, adding three rigs. Two rigs also came online in the Cana Woodford, and one began drilling in the Marcellus and Permian. One shut down in the Eagle Ford and two came offline in the Granite Wash.


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