U.S. drilling rig count resumed its decline last week, falling by 4 rigs to 247 from 251 previous week and 934 previous year, according to Aug. 7 report from Baker Hughes. There were 122 rigs in Permian Basin (124 previous week, 444 previous year), 104 rigs in Texas (unchanged in previous week, 454 previous year) and 46 rigs in New Mexico (49 previous week, 109 previous year). U.S. count was the 13th record low for the year.
Eddy County (down 2 last week to 26) and Lea County (down 1 last week to 20) remain Permian’s leaders followed by Martin County with 18 (up 5 in past week), Loving with 13 and Midland with 12. Rigs were restored last week in Borden, Glasscock and Ward counties.
Oslo-based Rystad Energy said horizontal drilling activity in U.S. oil basins “is unlikely to materially recover this year.” Count of monthly drilling permits declined in July to 10-year low of 454, according to Rystad, lowest since 438 in September 2010. U.S. horizontal rig count was 714 in Baker Hughes’ report of Feb. 21, but down to 211 as of Aug. 7. And Permian’s share of U.S. onshore rigs is increasing.
U.S. Energy Information Administration this week lowered its forecast of U.S. crude oil production for 2020 by 370,000 b/d to 11.3 million b/d (11.1 million forecast for 2021) after 12.2 million b/d in 2019. Production for May was 1.2 million b/d lower than forecast, “indicating more extensive production curtailments than previously estimated.”
Rig counts as of Aug. 7 in other leading states include 29 in Louisiana (unchanged in past week), 20 in Pennsylvania (unchanged) and 11 each in North Dakota and Oklahoma. Rig counts in other leading regions include 32 in Haynesville (unchanged), 25 in Marcellus (unchanged) and 11 each in Williston and Eagle Ford (down 1 in previous week).