Growth in rig count and production is slowing amid rising costs in oil and gas industry. Baker Hughes said as of May 13 there were 335 rigs in Permian Basin (unchanged in past week, up 104 in past year), 345 in Texas (up 1 in past week, up 129 in past year), 98 in New Mexico (unchanged in past week, up 28 in past year) and 714 in U.S. (up 9 in past week, up 261 in past year).
U.S. Energy Information Administration reduced its forecast for oil production to 11.9 million b/d for 2022 from previous estimate of 12.01 million b/d. EIA said last week production declined for the first time in three months by 100,000 b/d to 11.8 million b/d. Bloomberg said it signals that “soaring costs across the oil fields may be preventing drillers from expanding output.”
Louisiana remains No. 3 among states in rig count with 63 followed by Oklahoma with 57 and North Dakota with 36. Haynesville remains No. 2 among regions with 68 rigs followed by Eagle Ford with 62, Marcellus with 39 and Williston with 38.
Lea County, N.M., leads in Permian Basin as of May 13 with 48 rigs followed by Eddy, N.M., with 45, Midland with 40, Martin with 34, Reeves with 31, Loving with 28, Howard with 21 and Upton with 17.