Thirteen additional oil and gas rigs were idled in the past week in U.S., according to June 19 weekly report from Baker Hughes, for a new total of 266 – lowest since the Houston-based service company began keeping records in 1940. It marked the 15th consecutive week of U.S. declines since March and seventh consecutive record low. Reuters said the count of 132 in Permian Basin – down 5 in the past week – matches the lowest set in 2016 according to data back to 2011. In the past year, U.S. has idled 701 rigs (72.5 percent) and Permian 307 (69.9 percent).
Texas has 111 rigs (114 week ago, 463 year ago), and New Mexico has 51 rigs (56 week ago, 100 year ago). New Mexico led producing states in losses last week.
Analysts from Tudor, Pickering, Holt and Co. said, “While weekly declines have slowed a bit versus what we saw in April and May, they are likely to continue at the slower pace into the 3Q with most operators in no rush to pick up rigs….”
Five rigs were idled in Eddy County, N.M., last week, but it still leads Permian Basin with 31. Lea County, N.M., is runner-up with 20 rigs followed by Loving with 14, Martin with 13 (up 2 in past week) and Midland (down 2 in past week).