Baker Hughes US Land Weekly Rig Report - July 17 2020

The Baker Hughes Weekly Rig Report shows that US Land lost 5 rigs in the last week. The Permian, ArkLaTex and MidCon each lost one rig while the Northeast lost 2 rigs. The Eagle Ford added one rig this week. The US Land Rig Count is down 68.7% since the downturn started in March.

Over a month ago, I said that the US Land Rig Count would soon reach the bottom, but that hasn't proven to be true. The rate at which we are losing rigs has decreased from 8% to 12% losses per week down to 1% to 2% per week. Many of the small to mid-size operators dropped rigs immediately while the larger operators have made reductions more slowly. The main example is ExxonMobil. At the start of the year, ExxonMobil was running approx 55 rigs in US Land and over the last couple of months, they have reduced that to approx 30 rigs. They will probably dropped 5 to 10 more rigs throughout the remainder of the year, which will impact the overall rig count.

Figure 1: Baker Hughes US Land Weekly Rig Count - July 17 2020
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Weekly Rig Count - July 17 2020
(Source Baker Hughes)