Improving oil prices continue to spark a growing rig count as Permian Basin added 6 rigs in the previous week for 198 actively at work as of Feb. 5, according to Baker Hughes. Permian drilling rig count is up 13 percent since starting 2020 with 175 rigs. Baker Hughes said there are 189 rigs in Texas (up 7 in previous week), 61 rigs in New Mexico (down 1) and 392 rigs in U.S. (up 8). It was the third straight week of declining rig count in New Mexico, which started the year with 65 active oil and gas drilling rigs.
Enverus said Chevron accelerated to a 6-rig program in Permian after averaging 5 rigs in January. Tap Rock Operating ramped up to 5 rigs to start February (all on federal land in Lea County) after averaging 4 rigs for the last three months. Apache renewed its drilling program in Upton County after being idle for eight months. Battalion Oil is running a rig in Ward County after a halt to drilling for nine months. Lea County, N.M., remains the Permian leader with 32 rigs (down 2 in previous week) followed by Eddy County, N.M., with 29 rigs (up 1) and Martin County with 24 (up 3). Others include Loving with 18, Howard with 17, and Midland and Reeves with 16 rigs each.
Louisiana again is third among states with 47 rigs (unchanged in previous week) as of Feb. 5 followed by Oklahoma and Pennsylvania with 18 rigs each and North Dakota and West Virginia with 12 rigs each. Haynesville remains runner-up among regions with 47 rigs (up 2 in previous week) followed by Marcellus with 30 (unchanged), Eagle Ford (unchanged) and Williston with 12 (unchanged).