Second-longest build, in 1992, was 14 consecutive weeks; U.S. count reaches 916, Permian adds 2
The U.S. drilling industry has now seen 20 weeks of consecutive rig gains, according to the latest Baker Hughes rig count, released today.
Eight rigs came online in the U.S. this week, bringing the total number of rigs active in the U.S. to 916. All eight additional rigs were land-based rigs, while inland waters and offshore were unchanged.
Twenty weeks of consecutive rig gains is significantly longer than any previous build. The next-longest period of sustained rig gains was in late 1992, when the rig count increased for 14 weeks. The current build has also added the most rigs in a single run, with 257 rigs added since the drop in early January. The 14-week build in 1992 saw 248 rigs come online.
80% of rigs target oil
Development in the U.S. continues to focus on oil, as 11 oil-targeting rigs came online this week. Three gas-targeting rigs shut down. Oil rigs now account for 80% of all active rigs in the U.S., while only 20% of rigs are targeting gas. For reference, the all-time high proportion of oil rigs was 83.4% in 2014.
Rigs showed significant movement between states this week, with many states adding or losing rigs. Texas added the most this week, with an increase of five rigs that reversed the decline seen in the state last week. Oklahoma added three rigs, with one came online in Colorado, North Dakota and Ohio. One rig shut down in Louisiana, while two came offline in New Mexico and Pennsylvania.
Most of the rigs added this week moved to basins not specifically tracked by Baker Hughes, as little net change was recorded among the major basins. Unsurprisingly, the Permian added two rigs to end the week with 364. One rig came online in three basins, the DJ-Niobrara, Utica and Williston. The Marcellus saw two rigs shut down, while the Mississippian had one rig shut down. “Other basins,” all the basins not individually broken out by Baker, added six rigs this week.
