Counts of active oil and gas drilling rigs in U.S. increased for the sixth straight week as of Oct. 23, according to Baker Hughes. The U.S. rig count was 287 – an increase of 18 percent from the 2020 low of 244 in August. There were 133 rigs in Permian Basin (increase of 14 percent since 2020 low of 117 in August), 125 rigs in Texas (increase of 25 percent since 2020 low of 100 in August) and 45 rigs in New Mexico (increase of 10 percent since 2020 low of 41 in September).
Permian leader is Eddy County, N.M., with 23 rigs (unchanged in past week) followed by Lea, N.M., with 22 (unchanged), Martin with 19 (unchanged) and Midland with 15 (down 1 rig in past week).
Enverus from RS Energy Group said companies adding rigs in Permian Basin recently include ConocoPhillips, EOG Resources, DoublePoint Energy and Cimarex Energy. EOG ran an average of 4 rigs in Permian starting in mid-May then increased to 5 in August, 7 in September and 8 in October. DoublePoint added a sixth rig in October, Cimarex went from 1 rig in June to 4 in September, and ConocoPhillips added a second rig in October after running 1 since June.
Enverus updated its flaring intensity estimates in Permian Basin for October to 430 MMcfd – an increase of 70 MMcfd or 19 percent from September. “The increase in flared volumes could indicate more activity in the basin from lows through 2020Q2,” the report said. “Intensity in the basin is at late-2018 levels again.”
Baker Hughes said rig counts in other leading states as of Oct. 23 include 37 in Louisiana (38 previous week), 18 in Pennsylvania (unchanged), 15 in Oklahoma (14 previous week) and 11 in North Dakota (unchanged). Rig counts in other leading regions include 37 in Haynesville (unchanged), 26 in Marcellus (unchanged), 16 in Eagle Ford (unchanged) and 12 in Williston (unchanged).