Baker Hughes Weekly Rig Count - June 5 2020

The Baker Hughes Weekly Rig Count showed that US rigs continue to decrease this week, dropping 18 more rigs to 271 rigs. This week, the Permian Basin lost the fewest rigs since March 20, losing only 7 rigs. The Eagle Ford rig count dropped 32% this week, dropping 8 rigs. Looking at the rig count trends, the other basins have reached bottom in the last couple of weeks. 

With oil prices holding onto their recent gains, I would expect that we should hit the bottom of the rig count in the next couple of weeks. There are many reports that operators are opening up their shut in wells, which should result in increased production. Hopefully we will see an increase in drilling as all of the shut in wells are returned to production and the natural decline in production continues to push prices higher.

Figure 1: Baker Hughes Weekly Rig Count - June 5 2020
(Source: Baker Hughes Rig Count)

Table 1: Baker Hughes Weekly Rig Count Comparison
(Source: Baker Hughes Rig Count)