U.S. ended a streak of 20 straight weeks of declining oil and gas drilling rig counts as of July 31, according to Baker Hughes, by remaining unchanged with 251 active rigs (942 year ago). Permian Basin resumed its decline with a loss of 2 rigs in the past week to fall to 124 (442 year ago), Texas added a rig to 104 (455 year ago), and New Mexico resumed its decline to 49 rigs (51 week ago, 107 year ago). Petroleum economist Karr Ingham told reporters recently, “I think the rig count is about to hit bottom, and we will begin to stand up a few rigs here and there.” The 251 rigs is the lowest on record since Baker Hughes began keeping data in 1944.
Eddy County, N.M., with 28 rigs and Lea County, N.M., with 21 remain the Permian leaders – each down 1 in past week. Loving, Martin and Midland counties each is home to 13 rigs as of July 31 followed by Reeves with 11 and Upton with 10.
Other leading states include Louisiana with 29 rigs, Pennsylvania with 20, and North Dakota and Oklahoma with 11 each. Other leading regions include Haynesville with 32 rigs, Marcellus with 25, Eagle Ford with 12 and Williston with 11.
U.S. Energy Information Administration said Aug. 4 production of crude oil decreased in May by 1.99 million barrels per day – the largest monthly decrease since at least January 1980 – to about 10 million b/d. This decrease topped the previous record drop in September 2008 when hurricanes Gustav and Ike caused production to fall by 1.03 million b/d. May marked the sixth straight monthly decline in crude oil production. Texas had the largest decrease from April to May at 764,000 b/d (14.8 percent) followed by North Dakota at 353,000 b/d (29.1 percent). EIA expects U.S. crude production to increase in July as demand and prices increase.