Mella McEwen mmcewen@hearstnp.com
A Nabors Industries drill rig stands over an oil well for Chevron in the Permian Basin in Midland, Texas. A new analysis from IHS Markit finds the majors will lead the next wave of Permian oil production growth as they incorporate the lessons learned by the independents in producing unconventional resources. The report says Chevron is already making progress.
Daniel Acker/BloombergUS oil and gas producers continue to put drilling rigs back to work as the rig count rebounds from its record low of 244 set in August 2020 amid the COVID-19 pandemic.
Oilfield services firm Baker Hughes said Friday its weekly rig count, which it has published since 1940, rose by three to 579, 233 more than the 346 at work across the US last December. This is the second consecutive weekly increase and record 16th monthly increase for the rig count, according to Reuters. It sits at its highest level since April 2020.
There were 475 rigs seeking crude oil, up four for the week and 212 more than the 263 drilling for oil last year. The number of rigs drilling for natural gas inched down by one to 104, still 23 more than the 81 drilling for gas a year ago.
Texas added three rigs for 275 drilling statewide, 117 more than 158 reported last year. New Mexico dropped by one rig to 89 for the week. Louisiana (1), Oklahoma (2) and Pennsylvania (1) joined Texas as producing states to see gains while California (1) and West Virginia (2) joined New Mexico with declining rig counts.
The Permian, which continues to account for almost half the nation’s drilling rigs, added two rigs for 288, 114 more than the 174 working regionwide last year.
Lea County, New Mexico, remains the most active county in the Permian with 58 rigs, down two for the week. Midland County and Eddy County, New Mexico, follow with 29 rigs each, unchanged for Midland and up one for Eddy County.
Reeves County added one rig for 23. Howard and Martin counties each reported 19 rigs for a second week. Loving County dropped one rig for 16 while Ward County added two rigs for 13 at work within county lines this week. Andrews and Upton counties saw 11 rigs each for a second week.