Counts by Baker Hughes of active oil and gas drilling rigs declined in Permian Basin, Texas and New Mexico last week, but the U.S. count was unchanged at 254 after adding 10 rigs the previous week to reverse a five-month decline. As of Aug. 28, Permian Basin had 125 rigs (127 previous week), Texas had 107 rigs (108 previous week), and New Mexico had 46 rigs (47 previous week). Texas and New Mexico were the only producing states to idle rigs last week.
Eddy County, N.M., again leads Permian Basin with 28 rigs (up 1 in past week) followed by Martin County with 22 (also up 1), Lea, N.M., with 18, Midland with 13 and Loving with 10.
Other leading states include Louisiana with 34 rigs (32 last week), Pennsylvania with 18, Oklahoma with 11 and North Dakota with 10. Louisiana was the only producing state to add rigs last week. Other leading regions include Haynesville with 35 rigs (up 3), Marcellus with 26, Williston with 10 and Eagle Ford still in single digits with 9. Haynesville was only major region to add rigs last week.
U.S. Energy Information Administration said Monday U.S. oil production rose in June by 4.2 percent (420,000 barrels) from May to 10.436 million barrels a day, although it remains below April production of 11.99 million b/d. Production in Texas rose in June from May by 5.1 percent (227,000 barrels) to 4.637 million b/d. In the past year, production is down 13.7 percent in U.S. and 6.8 percent in Texas.
Enverus Intelligence by RS Energy Group said Wednesday in a report titled “The Rocky Road to Recovery” that “a return to pre-covid19 levels will be delayed until 2024… The global economy is in a deep hole from which it will take some time to climb out.”