Texas, which started 2020 with 404 oil and gas drilling rigs, idled 4 rigs last week for a count of 100 active rigs, according to the weekly report of Aug. 14 from Baker Hughes. New Mexico lost another rig to fall to 45 (105 to begin 2020), and U.S. idled 3 rigs for a new total of 244 (805 to start 2020). In the Permian Basin, there were 117 rigs as of Aug. 14 (122 previous week, 405 to start 2020). There were 172 oil-directed rigs in U.S. (176 previous week, 677 to start 2020). U.S. count is 14th record low this year and 74 percent below count of 935 year ago.
Martin County added 7 rigs in past two weeks to rank second in Permian with 20 rigs behind Eddy County, N.M., with 26. Other leaders include Lea, N.M., with 19, Loving with 13 and Midland with 11.
Other leading states include Louisiana with 31 rigs (up 2 in past week), Pennsylvania with 20 (unchanged), and North Dakota and Oklahoma with 11 each. Other leading regions include Haynesville with 32 (unchanged), Marcellus with 25 (unchanged), and Marcellus and Eagle Ford with 11 each.
The Drillinginfo report of Aug. 13 from Enverus said, “It appears the industry has found a bottom over the last month at least temporarily… This level of activity is still fragile and depends on avoiding any more shocks to global demand.” Enverus said front-month contract for WTI settled Aug. 5 at $42.19 – the first time it closed above $42 per barrel since March. Average day rate across all rig classes in U.S. was $15,898 in July. Rates have continued to fall since February, but the decline started to taper off over the last two months. And oil production has stabilized to 11.0 million b/d for the week that ended July 31 – down 100,000 from previous week, but well above 2020 low of 10.5 million b/d in June.