The gains in rig count in 11 weeks of 2020 in Permian Basin were erased in one week in Baker Hughes’ report of March 13. The Houston-based oilfield services firm said 13 rigs were idled in the past week to bring the total oil and gas drilling rigs from 418 down to 405 – the same number to start the year. Also as of March 13, there were 397 rigs in Texas (down 11 from previous week), 112 rigs in New Mexico (down 5 in past week) and 772 rigs in U.S. (down 20 in past week). ENVERUS Drillinginfo said March 17, “Major rig declines are on the horizon with numerous companies announcing revisions to 2020 plans… after a looming Saudi Arabia/Russia price war and reduced demand outlook due to the coronavirus.”
Houston Chronicle said in 2019 more than 900 companies filed an average of 230 drilling permits per week. Activity slowed this month to 181 drilling permits filed March 4-11 by 64 companies and one week later 167 drilling permits filed by 59 companies. EOG Resources was the leader with 27 permits filed in two weeks. Pioneer Natural Resources filed 21 permits in two weeks for new horizontal wells in Midland and Upton counties targeting Spraberry.
Most Permian counties lost rigs in past week; Eddy (57) and Lea (54) in New Mexico remain the leaders. Others include Midland (43), Martin (42), Reeves (37), Howard (34) and Loving (33).
Other leading states were North Dakota (50), Lousiana (47) and Oklahoma (43). There were no rig increases among states in the past week. Other leading regions were Eagle Ford (67), Williston (51), Haynesville (43) and Marcellus (39).