Two rigs shut down, leaving 1,053
Drilling activity fell slightly this week but remained near equilibrium, according to the latest edition of Baker Hughes’ Weekly Rig Count.
A net two rigs shut down in the week, meaning there are now 1,053 rigs actively drilling in the country. Both of these rigs were land-based, inland waters and offshore activity was unchanged. There are currently 1,028 land, five inland waters and 20 offshore rigs active in the U.S.
Overall, the U.S. rig count has been relatively steady over the past five months, hovering near 1,050 rigs. This situation is likely to continue in the near future, barring a significant change in commodity prices. WTI prices have been reasonably constrained over the period, ranging from $65/bbl to $75/bbl.
One oil-targeting rig and one miscellaneous rig each shut down in the week, while gas rigs were unchanged. There are currently 866 oil, 186 gas and one miscellaneous rig operating.
Drilling activity shifted in favor of vertical trajectories this week, with two such rigs coming online. Meanwhile, two directional and horizontal rigs shut down. Horizontal activity dominates current operations, accounting for 919 rigs, or 87.3% of all operations. Despite this week’s shifts, directional operations still outnumber vertical, as there are 69 directional rigs and 65 vertical rigs currently drilling.
Rigs concentrated in the most popular area in the American oil and gas space this week, as Texas added six rigs in the week, the only increase among U.S. states. Three rigs came offline in Oklahoma, while two shut down in Ohio and Alaska and one came offline in North Dakota.
The six Texas rigs moved to the major basins in the state, as the Permian added five rigs and the Eagle Ford added one. One rig also began drilling in the Granite Wash, while two shut down in the Utica. The Cana Woodford saw a major decrease in activity this week, with six rigs shutting down. This represents just under 10% of the rigs active in the play, and there are now 60 active Cana Woodford rigs.
