Changes very concentrated this week

U.S. drilling activity increased this week, snapping five weeks of decline, according to Baker Hughes Weekly Rig Count.

Nine rigs came online this week, bringing the total number of rigs in the U.S. above 900 again, to 907. The changes this week were very concentrated, in almost every category. The only change among rig types were land-based rigs, which added nine to end the week with 888 active. Inland waters and offshore rigs were unchanged, at one and eighteen, respectively.

Changes in hydrocarbon targets were simple, with all nine new rigs targeting oil. There are now 738 oil-targeting rigs and 169 gas-targeting rigs.

Horizontal activity roared back this week, with 12 horizontal rigs beginning activity. One directional rig also started up, while four vertical rigs shut down. There are now 776 horizontal rigs operational in the U.S., compared to 74 directional and 57 vertical. This means horizontal rigs make up 85.6% of all activity, the highest proportion of horizontals ever recorded.

Changes among the major states and basins tracked by Baker were also concentrated in a few locations. Oklahoma saw activity increase by six, and four rigs came online in New Mexico. One rig started operations in Alaska and Utah, while one shut down in West Virginia. Texas saw activity drop, losing two rigs in the week.

Seven rigs began operations in the Cana Woodford, and another six started up in the Permian. Two more began drilling in the Eagle Ford, while one shut down in the Utica. Five rigs shut down among smaller basins not large enough to be tracked individually.

Canada adds 11 rigs

Activity also increased in Canada, where 11 rigs started up over the week, giving a total of 203 rigs operational in the country. Eight of these rigs are targeting oil, while four target gas. The country’s sole “miscellaneous” rig shut down in the week.

Asia-Pacific, Africa add activity, Middle East falls

International activity also increased last month, according to Baker’s recently-released International Rig Count.

The number of international rigs increased by 20 to 951 in the week, snapping a three-month decline streak. The largest increase in activity was seen in the Asia-Pacific region, where 24 rigs came online. India and China were responsible for most of this increase, adding a combined 18 rigs. Activity also increased in Africa, where six rigs came online. This increase was primarily due to growing activity in Algeria, which added five rigs in the month.

Activity was flat in both Europe and Latin America, though individual countries in each region saw counts change. Drilling dropped significantly in the Middle East, where ten rigs shut down. The largest rops were seen in Pakistan and Kuwait, which lost six and four rigs, respectively. This drop was somewhat balanced by four rigs starting activity in Saudi Arabia.

U.S. Rig Count Snaps Five-Week Drop, Rises above 900

Source: Baker Hughes

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