Rig count resumes decline

After a pause last week, the nation’s rig count resumed its decline to record-setting lows, according to Baker Hughes’ weekly rig count.

The number of  rigs at work in the U.S. fell four to 247 this week, the lowest since the oilfield service company  began tracking the rig count in the 1940s.  The total is also 674 rigs below the 909 at work this time a year ago. The count has plunged over 60 percent since mid-March. This is the 13th record low the Baker Hughes rig count recorded this year, well below the previous low of 404 set during the downturn of 2014-2016.

Texas reported 104 rigs operating in the state, unchanged from the previous week but 350 rigs below the 454 tallied a year ago. The Lone Star State’s western neighbor, New Mexico, laid down three rigs for a count of 46. New Mexico was the only one of the nation’s producing states to report a decline in rigs; all others were unchanged.

The Permian Basin, home to just under half the nation’s operating rigs, dropped two rigs to 122 and is 322 rigs below last year’s count of 444 rigs. Texas’ Eagle Ford play dropped one rig to 11 rigs in operation.

Eddy County, New Mexico, remained the most active county in the Permian Basin with 26 rigs at work, down two from the previous week. Lea County, New Mexico, followed with 20 rigs, down one for the week.

Martin County posted the sharpest increase in rig activity this week, adding five rigs to put 18 at work within county lines. Loving County reported 13 active rigs, unchanged from a week ago. Midland County lost one rig to 12.

Borden, Glasscock and Ward counties each saw renewed activity this week, with one rig at work within each county.

Source: MRT

Read the latest issue of the OGV Energy magazine HERE.