Weaker commodity prices are undercutting drilling activity, with the US rig count falling for a fourth consecutive week, the first time that has happened since June 2020.
Oilfield services company Baker Hughes said Friday its US rig count, which it has issued weekly since 1944, dropped by three to 746, the lowest level since this past June. However, the count is 83 rigs or 13% higher than the 663 reported last March.
The number of rigs drilling for crude oil slipped by two to 590, the lowest count since last June but 63 more than the 527 drilling for oil a year earlier. The number of rigs drilling for natural gas dipped one to 153, 18 more than the 135 seeking natural gas last year.
Texas was unchanged at 366 rigs drilling across the state, 46 more than the 320 active last year. New Mexico fell three rigs to 103. Louisiana (3) and Pennsylvania (3) joined New Mexico as producing states to see declines while Alaska (3), Colorado (1) and West Virginia (2) were the only producing states to see increases.
The Permian Basin led activity declines, falling six rigs to 343 for the week – 27 more than the 316 drilling around the Permian last year.
Lea County, New Mexico, remains the most active county in the Permian with 55 rigs, down two. Eddy County, New Mexico, is second with 46 rigs, down one for the week.
Martin County reported 39 rigs, up one for the week. Reeves County showed the sharpest increase among Permian counties, adding three rigs for 38. Loving County fell two to 28. Midland County reported its first gain in at least three weeks, adding two rigs for 26 at work within county lines. Howard and Upton counties each reported 20 rigs this week unchanged for Howard and up two for Upton.
Enverus Foundations, part of the energy-focused Software as a Service firm Enverus, said its US rig count reached 854 during the week ended March 8, rising by five from the previous week’s high point. The count is flat in the last month and up 11% year over year.
Despite the weekly bump, the U.S. rig count is on a downward trajectory this year. The current total of 854 rigs running is off by 24 from the first quarter high of 878 recorded Jan. 15. Furthermore, the last 12 months’ high of 897, on Oct. 10, was 43 rigs higher than the current count.
After falling for most of 2023, the Anadarko Basin’s rig count rose for the second week in a row, adding three rigs to reach 72. The Gulf Coast rose by two rigs to 112, and the Williston Basin added one rig at 41, while the DJ Basin was flat at 20. The Permian slid by one rig to 341, and Appalachia was down by one to 56.
Energy News Beat