Permian Basin’s streak of consecutive weeks to add drilling rigs reached 10 as of Oct. 15, according to Baker Hughes. There were 267 rigs in Permian Basin (266 week before, 130 year before), 250 rigs in Texas (247 week before, 123 year before), 85 rigs in New Mexico (86 week before, 45 year before) and 543 rigs in U.S. (533 week before, 282 year before). Enverus said as of Oct. 14 that Pioneer Natural Resources with 24 rigs is the most active operator in U.S. followed by EOG Resources with 19, Mewbourne Oil and Devon Energy with 18 each, and ConocoPhillips and Continental Resources with 17 each.
Lea County, N.M., remains the most active in Permian Basin with 55 rigs (down 1 in past week) followed by Eddy, N.M., with 27 (down 1), Midland with 25 (down 1), Reeves with 23 (unchanged) and Martin with 20 (down 4).
Haynesville remains the No. 2 region with 46 rigs followed by Eagle Ford with 40 (up 2 in past week), Marcellus with 27 and Williston with 23. Louisiana remains No. 3 among states with 47 rigs (up 2) followed by Oklahoma with 43 (up 2) and North Dakota with 22.
U.S. Department of Energy said Monday oil production in Permian is approaching levels not seen since before the pandemic. Production in October 2021 was 4.826 million b/d compared to 4.913 million b/d in March 2020. Bloomberg added, “The Permian has low breakeven production costs, high rates of productivity and so is best positioned to recover even though total U.S. crude production is still down. Private drillers in the basin have been seeking to capitalize on the surge in oil prices, ramping up volumes steadily, while public companies are under shareholder pressure to keep spending in check.”
Recovery has been slower in other regions. The department said Monday production in Bakken is 26 percent short of its historic high, and output in Eagle Ford is 37 percent below its record volume.