The pace of the declining rig count slowed across Permian Basin, Texas and U.S. in Baker Hughes’ weekly report of June 12. But the count fell for the 14th straight week in U.S. and 13th in Permian and Texas. As of June 12 there were 137 active oil and gas rigs in Permian (141 week ago, 441 year ago), 114 in Texas (115 week ago, 467 year ago) and 279 in U.S. (284 week ago, 969 year ago). There were 56 rigs in New Mexico (58 week ago, 101 year ago). For the first time since March, Texas did not lead producing states in losing rigs. U.S. Department of Energy said about three-quarters of the rigs that have been shut down are in the nation’s top three crude-producing regions – Permian, Eagle Ford and Bakken.
Eddy County, N.M., with 36 rigs remains the Permian leader (unchanged in past week) followed by Lea County, N.M., with 20 rigs (down 2 in past week) and Midland and Loving each with 14. Last week Midland lost 4 rigs, and Loving gained 2. Martin and Reeves counties have 11 rigs each.
Rig counts in other leading states include Louisiana with 34, Pennsylvania with 22 (up 2 in past week), North Dakota with 11 and Oklahoma with 10 (101 a year ago). And in other leading regions there were 33 rigs in Haynesville, 28 in Marcellus, 13 in Eagle Ford (73 a year ago) and 11 in Williston.
According to Reuters, analysts expect oil and gas operators “to continue laying down rigs this year as they cut capital expenditures and will keep the rig count low next year and in 2022.”