Baker Hughes Weekly Rig Count - Sept 4 2020

For the 3rd week in a row, the Baker Hughes US Land Rig Count has held steady atr 240 rigs. The Bakken dropped one rig while the ArkLaTex added one rig. The Permian Basin was flat for the second week in a row with 125 active rigs.

There has been a lot of discussion around DUCs and the current inventory available for fracing. I have seen some data that shows DUC count is slowly decreasing as operators frac DUCs and do not drill new wells. This has resulted in an up tick in frac activity while there hasn't been an increase in new wells drilled. At some point, the DUC count will drop to the point where frac activity will decline again. Since there is usually a 4 to 6 month lag from the time a well is drilled until it is fraced, we could see another signficant slow down in frac activity in the first part of next year.

Figure 1: Baker Hughes US Land Rig Count - Sept 4 2020
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Count - Sept 4 2020
(Source: Baker Hughes)

Table 2: Baker Hughes US Land Rig Count - Sept 4 2020
(Source: Baker Hughes)