Permian Basin and Texas continue to add drilling rigs as the price of a barrel of crude oil settled above $80 this week for the first time in seven years. Baker Hughes said as of Oct. 8 there were 266 rigs in Permian (263 previous week, 130 previous year), 247 rigs in Texas (243 previous week, 116 previous year), 86 rigs in New Mexico (86 previous week, 45 previous year) and 533 rigs in U.S. (528 previous week, 269 previous year). It was the ninth straight week to add rigs in Permian and fifth straight week in Texas and U.S. Texas’ gain of four rigs in the past week was the largest of the major producing states.
WTI settled Monday in New York at $80.52 – the highest since October 2014. U.S. Department of Energy said U.S. oil companies produced 11.3 million barrels a day last week – almost two million barrels a day below the peak of 13 million b/d before the pandemic started in early 2020. “It’s a remarkable recovery when considering most analysts at the start of the year had predicted oil might peak at $55 a barrel this year,” Houston Chronicle reported. “With oil at $80 a barrel, most oil companies can make a strong profit provided they have not hedged most of their production at lower prices.”
And U.S. Bureau of Labor Statistics said in September the oilfield services sector added 1,914 jobs (0.3 percent job growth) for the seventh straight month to bring the sector’s employment to 644,486 – almost half (315,600) in Texas. It was the fewest jobs added since April as covid19 infections continue to slow job growth. The sector has recovered 43,900 (40 percent) of the 109,000 jobs lost last year when employment reached a pandemic low of 597,067 jobs.
In Permian Basin, Lea County, N.M., continues to lead operators with 56 rigs after adding four in the past week. Other leaders include Eddy, N.M., with 28, Midland with 26, Martin with 24 and Reeves with 23. Haynesville remains the No. 2 region with 47 rigs followed by Eagle Ford with 38, Marcellus with 27 and Williston with 23. And Louisiana remains No. 3 among states with 45 rigs followed by Oklahoma with 41 and North Dakota with 22.