Permian Basin, Texas and U.S. continue to add drilling rigs. As of Nov. 5, according to Baker Hughes, there were 271 rigs in Permian Basin (up 3 in past week, up 124 in past year), 254 in Texas (up 4 in past week, up 115 in past year), 86 in New Mexico (down 1 in past week, up 36 in past year), and 550 in U.S. (up 6 in past week, up 250 in past year). The last report showing a declining rig count in Permian Basin was June 25 (236 rigs) – marking 19 straight weeks of a growing or flat Permian rig count. The last time Permian had at least 271 rigs was April 2020.
Enverus said Pioneer Natural Resources (25 rigs, including 24 in Midland Basin) and Occidental Petroleum (up 2 since mid-October to 14) are the Permian leaders.
The latest U.S. crude oil production forecast for 2022 from U.S. Energy Information Administration is up 1.4 percent from last month’s forecast. EIA said Nov. 9 that production is expected to grow to 11.9 million b/d in 2022 – up 200,000 barrels. EIA said, “The higher forecast is the result of our increased expectations for crude oil production in both the Permian Basin and federal offshore Gulf of Mexico.” EIA said production in October was 11.4 million b/d after 10.7 million b/d in September (forecast 11.6 million b/d in December).
Haynesville remains No. 2 among regions in rig count as of Nov. 5 with 46 rigs (unchanged in past week) followed by Eagle Ford with 40 (unchanged), Marcellus with 28 and Williston with 24. Louisiana remains No. 3 among states with 48 rigs (up 1) followed by Oklahoma with 44 (up 1) and North Dakota with 23.