As oil prices continue to climb to their highest levels since 2014, operators are adding rigs in Permian Basin and Texas and across the U.S. Baker Hughes said as of Feb. 11, there were 301 active drilling rigs in Permian Basin (up 7 in previous week, up 98 in previous year), 300 in Texas (up 13 in previous week, up 107 in previous year) and 635 in U.S. (up 22 in previous week, up 238 in previous year). New Mexico’s count was unchanged at 92 (up 31 in previous year). It’s the first time for at least 300 rigs each in Permian Basin and Texas since April 2020. WTI closed Feb. 11 with its eighth straight week of gains.
Permian leaders Lea (58 rigs) and Eddy (30) counties in New Mexico were unchanged in the past week. They are followed by Midland (down 1 to 29 rigs), Martin (up 3 to 27), Reeves (unchanged at 26) and Howard (down 1 to 20).
Louisiana (54 rigs) edged Oklahoma (53) for No. 3 among states in active rig count followed by North Dakota (33). Among regions, Eagle Ford and Haynesville have 54 rigs each followed by Marcellus with 35 and Williston with 34.
U.S. Energy Information Administration said Feb. 8 that U.S. oil production is expected to grow by 800,000 b/d this year to 12.0 million b/d and 12.6 million b/d in 2023 (Bloomberg said best is 12.3 million b/d in 2019). Production in Permian Basin is forecast to grow to 5.205 million b/d in March after topping 5 million b/d for the first time in January at 5.06 million b/d.
And oil majors this month have announced growing production for 2022. ExxonMobil said it will boost output in Permian Basin by 25 percent this year, Chevron Corp. said it will ramp up Permian supplies by 10 percent, and Continental Resources expects to raise oil production by about 25 percent.