Increasing crude oil prices continue to stimulate drilling activity. Houston-based Baker Hughes said as of March 26 Permian Basin added rigs for the ninth straight week. With an additional 5 rigs in the past week, Permian Basin has 221 rigs after starting 2021 with 175. There also are 205 rigs in Texas (202 previous week, 161 to start 2021), 67 rigs in New Mexico (unchanged in the past week, 65 to start 2021) and 417 rigs in U.S. (411 previous week, 351 to start 2021). The Permian and U.S. rig counts are the highest since April 2020.
“The longer crude prices stay above $55-$60 a barrel, the more confidence operators will have in bringing rigs back,” Parker Fawcett of S&P Global Platts Analytics said. “We think rig additions will continue to be slow and steady throughout the year.”
Lea County, N.M., is the Permian leader with 40 rigs (up 3 in past week) followed by Eddy, N.M., with 27 (down 3). Others include Midland with 25 (up 2), Howard and Reeves each with 21, Martin with 17, Loving with 16 and Upton with 11.
Haynesville is runner-up in rig count among U.S. regions with 45 as of March 26 (unchanged from previous week) followed by Eagle Ford with 31 rigs, Marcellus with 30, Williston with 14 and Cana Woodford with 12. Louisiana is third among states with 46 rigs followed by Pennsylvania with 18, Oklahoma with 17, North Dakota with 14 and West Virginia with 12.
Enverus said 60 percent of rigs added in Texas in the last month were in four counties in Permian Basin and Eagle Ford. In the Permian, 8 rigs were added in Midland County and 4 in Glasscock County. Pioneer Natural Resources added 6 rigs in Midland and 2 in Glasscock.