Permian Basin, Texas and New Mexico continue to add oil and gas drilling rigs, according to weekly report of March 13 from Baker Hughes. Permian Basin added 3 rigs for a new total of 418 (464 a year ago), Texas added 4 rigs for a total of 408 (501 a year ago), and New Mexico added 1 rig to reach 117 (106 a year ago). It was fifth straight week for Permian Basin to add rigs and eighth time in last nine weeks (405 to start 2020). U.S. lost 1 rig for a count of 792 (1,026 a year ago).
Enverus Drillinginfo, in a post of data for 2019Q4, said, “Operators scaled back operations in Q4 as the price outlook failed to improve, especially for natural gas and NGLs. The current year doesn’t appear much rosier, and another YOY decrease in well starts is fairly certain.” Drillinginfo said well starts in U.S. totaled 18,108 in 2019 – down by 1,353 spuds YOY or 7 percent. The report added, “Comparing Q4 to the prior quarter, Permian not only remains the most active major shale region, but was also the only one to increase well starts.”
Eddy County, N.M., added 1 rig and remains the most active in Permian with 58 rigs followed closely by neighboring Lea, N.M., with 57. Others include Midland (46 rigs), Martin (41), Reeves (41), Loving (35), Howard (32) and Ward (20).
Rig counts in other leading states are North Dakota (51), Louisiana (47) and Oklahoma (46) and in other leading regions are Eagle Ford (68), Williston (52), Haynesville (43) and Marcellus (39).