Baker Hughes US Land Weekly Rig Report - May 28 2021

This week, the Baker Hughes US Land Rig Count was up 2 rigs to finish at 442 active rigs. The Permian and the MidCon each added 2 rigs, and the Eagle Ford added 1 rig. The Northeast lost 2 rigs and the DJ dropped 1 rig.

Figure 1: Baker Hughes US Land Weekly Rig Count - May 28 2021
(Source Baker Hughes)

Table 1: Baker Hughes US Land Weekly Rig Count - May 28 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - May 21 2021

This week, the Baker Hughes Rig count was up 3 rigs to finish to 440 active rigs for the week. The MidCon added 4 rigs while the ArkLaTex region lost 1 rig.

While the rig count increased again this week, the rig count in most areas remained flat. The Permian rig count has been flat for the last 7 weeks, only increasing by 7 rigs since April 1st. Based on the information from the earnings reports and the field, the majors are locked in to return profits to customers and paying off debt. The independent producers have increased rig count quickly but may have reached their capacity for new activity. I expect the rig count should reach a plateau over the summer and then increasing again toward the end of the year.

Figure 1: Baker Hughes US Land Weekly Rig Count - May 21 2021
(Source: Baker Hiughes)

Table 1: Baker Hughes US Land Weekly Rig Count by State - May 21 2021
(Source: Baker Hughes)

 

Baker Hughes US Land Rig Count - May 14 2021

This week, the Baker Hughes US Land Rig Count was up 3 rigs to finish at 434 active rigs. The Permian added 2 rigs and the Bakken and MidCon each added 1 rig. The ArkLaTex region dropped 2 rigs this week.

We continue to see mergers happen between companies in all basins, capturing the efficiency and leverage of large acreage positions. In smaller basins like the DJ and the Marcellus, there could be 3 or 4 major players in the basin. This lack of diversity could have an impact on the number of available service companies in the area. Large operators tend to use larger service companies, capable of supplying multiple services under one name. 

Figure 1: Baker Hughes Weekly US Land Rig Count - May 14 2021
(Source: Baker Hughes)

Table 1: Baker Hughes Weekly US Land Rig Count by State - May 14 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - April 30 2021

For the third week in a row, the Baker Hughes US Land Rig Count was flat at 426 active rigs. There were some changes in the regional rig count with the Permian losing 2 rigs and the ArkLaTex region losing 1 rig. The Eagle Ford gained 1 rig and the Texas Gulf Coast gained 2 rigs.

The Permian rig count peaked 3 weeks ago at 227 rigs and has fallen 3 rigs to 224 rigs this week. The Permian has been the driving force in the rig recovery, driven mostly by the independents. The majors are stockpiling cash to pay off debt and return money to investors. This may be a plateau in the rig count if the independents have reached their maximum rig count and the majors wait to improve their balance sheets before increasing rigs.

Figure 1: Baker Hughes US Land Weekly Rig Count - April 30 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Weekly Rig Count by Region - April 303 2021
(Source: Baker Hughes)