This week, the Baker Hughes US Land Rig report rose 4 rigs to finish at 389 active rigs. The Permian gained 3 rigs and the ArkLaTex and MidCon each gained 1 rig. The Bakken lost 1 rig this week.
After a crazy week of cold weather and very high gas prices, gas prices returned to their normal level below $3/mcf. Oil prices increased this week as OPEC+ announced that they would not be increasing production, which was a surprise to nearly everyone. This should help the industry continue to work through surplus oil that's in the market and maintain prices for profitable drilling. I don't expect a large increase in US based rigs as the capital still is not available for increased drilling programs.
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| Figure 1: Baker Hughes US Land Rig Count - Mar 5 2021 (Source: Baker Hughes) |
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| Table 1: Baker Hughes US Land Rig Count by State - Mar 5 2021 (Source: Baker Hughes) |
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