Thursday, May 21, 2020

SPE - New Low for Active US Crude Oil and Natural Gas Rigs

As of 12 May, only 339 oil and natural gas drilling rigs were operating in the US, the lowest since the numbers were recorded in 1987—marking a 56% decline (433 rigs) since 17 March. Most of the decrease was in oil-focused geologic plays, but natural-gas-focused plays also saw declines.

Within that 2-month period, 71% (308 rigs) of those taken out of service were in the top three US crude-oil-producing regions: the Permian, Eagle Ford, and Bakken. In mid-March, the Permian region had 405 operating rigs; by 12 May, that number had fallen by 57% to 175 rigs. The Eagle Ford and Bakken regions saw similar declines in that period, losing 64% and 69% of their rig counts, respectively.

https://pubs.spe.org/en/jpt/jpt-article-detail/?art=7075

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