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)