Permian Basin is above 200 in count of active oil and gas drilling rigs for the first time since May 2020. Houston-based Baker Hughes said as of Feb. 12 there were 203 rigs in Permian Basin (up 5 in previous week). The latest report above 200 rigs was May 1, 2020. Also as of Feb. 12, there were 193 rigs in Texas (up 4 in previous week), 61 rigs in New Mexico (unchanged) and 397 rigs in U.S. (up 5). New Mexico reversed a three-week decline. Permian’s count is up 16 percent since starting 2021 with 175 rigs; New Mexico is down 6.2 percent since starting 2021 with 65 active rigs. Enverus said Midland Basin has added 19 rigs since Jan. 1, including 3 by Diamondback Energy, and Delaware Basin has added 9.
• Lea County, N.M., continues to lead the nation and Permian with 32 rigs (unchanged in previous week) followed by Eddy, N.M., with 29 (unchanged) and Martin with 23 (down 1). Other leaders include Howard and Loving with 17 each, Midland and Reeves with 16 each, and Andrews with 10.
• Rig counts in other leading states include Louisiana with 61 (unchanged), Pennsylvania with 18 (unchanged), Oklahoma with 17 (down 1), North Dakota with 13 (up 1) and West Virginia with 12 (unchanged). Other leading regions include Haynesville with 46 (down 1), Marcellus with 30 (unchanged), Eagle Ford with 29 (up 1) and Williston with 13 (up 1).
• U.S. Energy Information Administration last week lowered its outlook for crude oil production in U.S. for 2021. Prices have rebounded, but Reuters reported that “production is expected to remain under pressure in the short term as high levels of debt and the desire to preserve cash make oil companies reluctant to ramp up.” EIA said production will average 11.02 million b/d in 2021 (11.1 million b/d in previous forecast) after 11.3 million b/d in 2020 and 12.2 million b/d in 2019.
• Bloomberg said U.S. oil production – much of it in Permian Basin – plunged by more than 2 million b/d when a winter storm brought ice, snow and sub-zero weather to Texas and other key producing states this week. The losses – caused by well shutdowns, equipment failures, flowline outages and disrupted road transport – helped push prices above $60 a barrel for the first time in more than a year.