Baker Hughes’ count of active oil and gas drilling rigs in Permian Basin posted its largest gain in 14 months (since January 2021) last week with the addition of 9 rigs for a new total of 332 (224 year ago). That is up 13.3 percent since starting the year with 293 rigs. As of April 8, there were 342 rigs in Texas (331 week ago, 209 year ago), 96 in New Mexico (unchanged in past week, 70 year ago) and 689 in U.S. (673 week ago, 432 year ago). Since the start of the year, rig count is up 23.5 percent in Texas and 17.6 percent in U.S. No major producing state reported a decline in rig count last week.
Lea (54 rigs) and Eddy (38) counties in New Mexico continue to lead the Permian Basin followed by Midland and Martin with 32 rigs each, Reeves with 27, Loving with 26, Howard with 22 and Upton with 19.
Haynesville remains No. 2 among regions with 67 rigs followed by Eagle Ford with 57, Marcellus with 37, Williston with 34 and Cana Woodford with 25. Louisiana remains No. 3 among states with 57 rigs followed by Oklahoma with 50, North Dakota with 33 and Pennsylvania with 25.
U.S. Energy Information Administration said this week U.S. crude production will grow at a more diminished rate than previously forecast as shale producers contend with higher production and labor costs. Output in 2022 is now expected to average 12.01 million barrels per day compared to EIA’s previous forecast of 12.03 million b/d. And in 2023 EIA expects production to increase by 940,000 b/d to 12.95 million b/d compared to the previous forecast of an increase of 960,000 b/d.
