The Baker Hughes Weekly Rig Count for the US Land increased 15 rigs this week to finish at 323 active rigs. The Permian added 4 rigs, the Northeast, Powder River and Eagle Ford added 3 rigs each, the MidCon and DJ Basin each added 1 rig. Drilling activity continues to increase toward the end of the year even though completions are lagging.
There have been several different reports of a supply crunch in the future due to an underinvestment in the industry. Internationally, there has been a lack of investment for more than 6 years as the US conventional plays added to the global oil supply. Once we work our way through the oil surplus created by COVID, there will be a lack of lack of investment will show there are limited supplies to respond to demand changes and that should drive oil prices up significantly. While the timeline for such an event is unknown, I would guess that we should it in the next 5 years.
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| Figure 1: Baker Hughes US Land Rig Count - Dec 11 2020 (Source: Baker Hughes) |
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| Table 1: Baker Hughes US Land Rig Count - Dec 11 2020 (Source: Baker Hughes) |
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