U.S. count of active oil and gas drilling rigs increased for the eighth straight week as of Nov. 6, according to Baker Hughes, to reach at least 300 rigs for the first time since May as the day rate for drilling continues to decline. There are 300 rigs in U.S. (296 previous week), 147 rigs in Permian Basin (142 previous week), 139 rigs in Texas (133 previous week) and 50 rigs in New Mexico (47 previous week). U.S. count is up 23 percent since a low of 244 in August, Permian count is up 27 percent since a low of 117 in August, Texas count is up 39 percent since a low of 100 in August, and New Mexico count is up 22 percent since low of 41 in September. Texas and New Mexico were the only major producing states to add drilling rigs last week.
Enverus from RS Energy Group said last week that “average day rates have yet to find a bottom since the oil price crash in March with the average falling another 1 percent in October to $15,269.” Some contractors told Enverus they expect drilling to improve slightly in 2021 because bid requests for next year’s drilling programs have increased.
In short-term energy outlook Tuesday, U.S. Energy Information Administration lowered forecasts for Brent crude spot prices to $40.61 per barrel this year and $46.59 in 2021 and for WTI spot prices to $38.24 in 2020 and $44.24 in 2021.
Eddy County (up 3 in past week) with 27 rigs and Lea County (down 1) with 22 rigs in New Mexico continue to lead the Permian Basin rig count. Other leaders include the Texas counties of Midland with 19 (down 1), Martin with 17 (down 1), Howard with 11 (up 2) and Reeves back in double figures with 10 (up 1).
Other leading regions include Haynesville with 37 rigs (unchanged in past week), Marcellus with 25 (down 1), Eagle Ford with 19 (up 2), Williston with 12 (unchanged) and Cana Woodford back in double figures with 10 (up 2). Other leading states include Louisiana with 37 (unchanged), Pennsylvania with 18 (unchanged), Oklahoma with 13 (down 1) and North Dakota with 11 (unchanged).