Baker Hughes US Land Rig Count - Jan 29 2021

This week, the Baker Hughes US Land Rig Count was up 6 rigs to finish at 365 active rigs. The Permian was up 4 rigs while the MidCon and Bakken each added 1 rig.

US Land Rig Count has been on a very steady incline for the last 12 weeks. It's not clear what the peak will be for rig count but in order to maintain a flat production rate for the US, the rig count will probably have to reach 600 rigs. I don't think we will get there this year and the current DUC count will help maintain production rates in the near term. The rig count at the end of 2021 will have a large impact in production in 2022.

Figure 1: Baker Hughes US Land Rig Count - Jan 29 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Count by State - Jan 29 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - Jan 22 2021

This week, the Baker Hughes US Land Rig Count increased 5 rigs to finish at 359 active rigs. The ArkLaTex, MidCon, Northeast and Bakken each added 1 rig while the Permian lost 1 rig. Alaska added 2 rigs this week as winter operations increased.

While the cancelation of the Keystone Pipeline permit is devastating to the pipeline workers, it should have a very limit impact on US Land oil and gas operations. The Keystone Pipeline was intended to bring heavy crude from Western Canada to refineries on the Gulf Coast. The refineries will continue to get supplies from existing pipelines, rail shipments or from international destinations.

Figure 1 -  Baker Hughes US Land Rig Count - Jan 22 2021
(Source: Baker Hughes)

Table 1 -  Baker Hughes US Land Rig Count by State - Jan 22 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - Jan 15 2020

This week the Baker Hughes US Land Rig Count increased 13 rigs to finish at 354 active rigs. The Permian added 10 rigs, the DJ Basin added 2 rigs and the ArkLaTex and Eagle Ford each added 1 rig.

Oil prices continue to climb and WTI was over $50 for the week for the first time since February. While the increasing oil prices are a good sign, there are plenty of reasons to remain cautious. COVID cases continue to increase, with new lockdowns in Europe and there is still plenty of oil supply if demand drops. Most projections showing demand returning to greater than 100 BOPD sometime in 2022 as the COVID vaccination reaches the majority of the population

Figure 1: Baker Hughes US Land Rig Count - Jan 15 2020
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Count - Jan 15 2020
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - Jan 8 2021

This week, the Baker Hughes US Land Rig Count rose 9 rigs to 341 active rigs. The Permian added 4 rigs, the Northeast added 2 rigs and the MidCon and West Coast each added 1 rig. Rig count continues to rise as oil prices remain in the $45 to $50 range.

In the last week, OPEC+ has come to an agreement to maintain production levels. US operators have echoed these statements, with many of the public operators discussing maintaining current production levels rather than trying to grow production. We will be able to determine the commitment of US Operators to maintaining production levels by monitoring US rig count. It's estimated that US Land rig count would need to approach 600 rigs in order to maintain current production levels. If we see a large increase of rigs past this level, US production will start to grow again. Hopefully we can avoid the mistakes of the past while rebuilding the US Oil and Gas Industry

Figure 1: Baker Hughes US Land Rig Count - Jan 8 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Count by State - Jan 8 2021
(Source: Baker Hughes)