Activity concentrates in major basins
Drilling activity increased slightly this week, as producers continue to react to the recent ascent of oil prices, according to Baker Hughes Weekly Rig Count.
A total of two rigs came online this week, meaning there are now 931 rigs active in the U.S. One land-based and one inland waters rig came online in the week. There are a total of 909 land, two inland waters and 20 offshore rigs operating.
Both new rigs are targeting oil, while the count of gas and miscellaneous rigs are unchanged. Oil-targeting rigs now make up 80.7% of all operations, much higher than the historical average of 42.8%.
Four horizontal rigs began operations, while two vertical rigs shut down. 71 directional, 796 horizontal and 64 vertical rigs are currently running. Directional rigs continue to outnumber vertical rigs, and have done so for the last 21 weeks. This suggests the recent and unprecedented trend of directional rigs outnumbering vertical rigs is not a fluke, and reflects a continued shift away from conventional activity.
While the overall rig count was little changed this week, many individual states saw rig counts shift. Once again, the largest increase in activity came from the most popular state for oil and gas activity, Texas, where five rigs began drilling. Three rigs came online in New Mexico, Two started drilling in Pennsylvania and began activity in Louisiana and West Virginia. One rig shut down in Oklahoma, North Dakota and Kansas. Three came offline in Colorado and four shut down in Ohio.
Haynesville continues to outnumber Marcellus
Operations concentrated on more popular basins this week, as the major basins tracked by Baker Hughes added a net six rigs this week. Three rigs came online in the Eagle Ford, Haynesville, Marcellus and Permian, while one rig began activity in the Barnett and Cana Woodford. One rig shut down in the Williston, two came offline in the DJ-Niobrara and Mississippian, and three stopped drilling in the Utica. The Haynesville continues to outnumber the Marcellus; this is only the third week this has occurred since 2011.
