Eight land rigs shut down

Drilling activity fell this week in the largest drop in over a year, according to the latest edition of Baker Hughes’ Weekly Rig Count.

The total number of rigs active in the U.S. dropped by eight this week, as sub-$50 oil prices stalled the current recovery. Rig activity in the U.S. has not decreased by this magnitude in one week since May 2016. Eight land-based rigs shut down this week, bringing the total number of such rigs to 915. One inland waters rig also shut down, but was offset by the activation of one offshore rig. There are now four inland waters and 17 offshore rigs active in the U.S.

The majority of the decrease in activity this week came from oil rigs, as seven oil-targeting rigs shut down. Only one gas-targeting rig came offline, meaning there are now 749 oil rigs and 186 gas rigs operating.

Horizontal rigs saw activity increase for the first time in six weeks this week, with two such rigs coming online. Directional rigs continue to outnumber vertical, as two directional rigs and eight vertical rigs shut down this week. There are now 795, 74 and 67 horizontal, directional and vertical rigs, respectively, active in the U.S.

Activity decreased in numerous states this week, and West Virginia’s addition of one rig represents the only increase among major U.S. states. One rig shut down in Colorado, New Mexico and North Dakota, while three came offline in Louisiana and Texas.

Most of the activity decrease came from the most popular basins, with the top four most active areas each showing decreases in rig count. The red-hot Permian cooled somewhat this week, as two rigs shut down in the basin. An additional three came offline in the Cana Woodford, while two ceased operations in the Eagle Ford and one rig stopped activity in the Williston and DJ-Niobrara. One rig came online in the Marcellus, the only increase in activity among the major basins tracked by Baker.

Rig Count Shows Largest Drop Since May 2016

Source: Baker Hughes


Legal Notice