Baker Hughes US Land Weekly Rig Count - June 18 2021

This week, the Baker Hughes US Land Weekly Rig count was up 9 rigs to finish at 456 active rigs. The DJ Basin added 3 rigs while the Permian, Bakken, West Coast and Powder River Basin each added 1 rig. 

Both oil and gas prices continue to climb, with oil averaging above $70 last week and gas averaging above $3. The last time both oil and gas were above these benchmarks was November 2018. Historically, these commodity prices would spur a rapid increase in drilling in the US. While we see an increase in rig activity, the response is depressed compared to the past as operators focus on fixing their balance sheets rather growing production. We will likely see record cash flows from operators at the end of the year due to higher commodity prices. If prices remain at this level through 2021, we should expect increased activity in 2022 as well.

Figure 1: Baker Hughes US Land Weekly Rig Count - June 18 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Count by State - June 18 2021
(Source: Baker Hughes)