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Drilling activity continues climb in Permian Basin


Rig activity slowed as July came to a close.

Oilfield services firm Baker Hughes and data analytics firm Enverus reported Friday the US rig count slipped by three to 488 for the week. At the same time, that’s 237 more rigs than the 251 at work in July 2020 as the rig count was dropping to record lows.

There were 385 rigs seeking crude, down two for the week but 205 more than the 180 at work last year. There were 103 rigs drilling for natural gas, down one for the week but 34 more than the 69 drilling for gas last July.

Texas added two rigs for 230 at work statewide, 126 more than the 104 at work last year. New Mexico reported 74 rigs down one for the week. North Dakota, Ohio and Pennsylvania joined Texas as producing states showing slight gains for the week while Colorado, Louisiana and Utah joined New Mexico in showing declines.
The Permian Basin added one rig this week for 243 drilling regionwide, 119 more than the 124 at work last year.

Lea County, New Mexico, remains the most active county in the Permian with 45 rigs, down one for the week. Midland County and Eddy County, New Mexico, follow with 28 rigs each, unchanged for Eddy County and down four for Midland County – the steepest decline among Permian counties for the week.

Reeves County followed close behind with 27 rigs, down one for the week. Martin County recorded 26 rigs, up three for the week and the sharpest rise among Permian counties for the week. Howard County also gained three rigs for 17 at work within county lines. Loving County had 15 rigs, unchanged, while Upton County added a rig for 14 rigs.

Enverus Rig Analytics, which has a different timetable and criteria than Baker Hughes, said the US rig count fell five to 559 as of July 28. The number of active rigs is up 3 percent on the month and up 94 percent year over year. The last week did not see particularly notable changes in major plays.
Major plays’ rig counts are up 50-250 percent year over year, with the DJ Basin and Gulf Coast Basin up the most. Up 250 percent year over year, there are 14 rigs running in the DJ. It’s a story of single-rig operators and there are just more of them now at 14 compared to four on July 28, 2020. 
On the Gulf Coast, the play has gone from 17 active operators a year ago to 45 currently. EOG has added the most rigs year over year at three, with a total of four running. With no rigs running last July 28, BP, Dunn Exploration, Penn Virginia and Venture Oil & Gas have added two rigs year over year. Tied with EOG as the most active operator in the play, ConocoPhillips is running four rigs as it was a year ago.
Last year at this time, there were zero rigs running in the Powder River Basin. As of July 28, there are 10 rigs running by seven operators. The most active drillers are Anschutz Exploration, Continental Resources and EOG Resources at two rigs each. Continental made its PRB debut in late April after closing on its acquisition of Samson Resources II on March 4.

 



Read More: Drilling activity continues climb in Permian Basin

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