Baker Hughes’ count of active oil and gas drilling rigs as of June 2 in U.S. declined for the fifth straight week to 696. The count was down from 711 the previous week, 779 to start the year and 727 a year ago. The U.S. rig count is down 10.7 percent this year from 779 to 696. All 15 U.S. rigs lost last week were oil-directed.
No major producing state or region added rigs last week. Texas led the states in decline in the past week with a loss of 6 drilling rigs to 353 (359 last week, 376 to start the year, 357 year ago). Also, there were 348 rigs in Permian Basin (350 last week, 353 to start the year, 342 year ago) and 107 rigs in New Mexico (108 last week, 102 to start the year, 98 year ago). Permian is one of only two regions with more rigs now than a year ago.
Leading the Permian Basin in rig count are New Mexico counties Eddy (up 2 to 56) and Lea (down 3 to 50). Other Permian leaders include Martin with 42 (down 1 in past week), Reeves with 36 (down 3), Midland with 31 (down 1), Loving with 26 (down 1), Ward with 18 (up 1), and Reagan and Upton each with 14 rigs.
Eagle Ford remains No. 2 among regions with 58 rigs (down 2 in past week, down 8 in past year) followed by Haynesville with 52 (down 2 in past week, down 16 in past year), Marcellus with 39 (unchanged in past week and past year), and Williston with 36 (down 2 in past week, down 2 in past year). Louisiana remains No. 3 among states with 52 rigs (down 2 in past week, down 9 in past year) followed by Oklahoma with 43 rigs (down 3 in past week, down 16 in past year), and 36 in North Dakota (down 1 in past week, up 1 in past year). Only three states (Colorado, North Dakota, West Virginia) report more rigs now than a year ago.
U.S. Energy Information Administration said this week that U.S. oil production reached a three-year high in March at 12.7 million barrels per day (up 171,000 b/d compared to February and up 995,000 b/d over March 2022).