The Baker Hughes US Land rig count continued to slide this week, down 5 rigs to 230 active rigs. The Permian Basin dropped 5 rigs (4 from Texas and 1 from New Mexico) while the other areas remained stable. One of the reasons behind the drop in Permian rig count is that the larger operators (in particular ExxonMobil) have been slower to react to the current market conditions with rig count reductions. I read an article earlier this week that ExxonMobil still had >25 rigs active and they were planning to get down to 15 rigs before the end of the year.
On the brighter side, there appears to be a lot more discussion about restarting operations. I have seen a couple of articles/reports discussing the potential for under supply in the midterm. Hopefully rig additions by other operators can offset the rig reductions by the larger operators like Exxon Mobil.
 |
| Figure 1: Baker Hughes US Land Weekly Rig Count - August 14 2020 (Source: Baker Hughes) |
 |
| Table 1: Baker Hughes US Land Weekly Rig Count - August 14 2020 (Source: Baker Hughes) |
 |
| Table 2: Baker Hughes US Land Weekly Rig Count - August 14 2020 (Source: Baker Hughes) |
No comments:
Post a Comment