Baker Hughes Weekly US Land Rig Count - June 4 2021

This week, the Baker Hughes US Land Rig Count was flat week on week, to finish at 442 active rigs. The Permian lost 1 rig and the ArkLaTex added 1 rig. 

Oil prices continue to climb, reaching their highest level since the summer of 2018. In the summer of 2018, oil prices were near $70 and the rig count was between 1100 and 1200 rigs. US oil production grew rapidly during this time, which is part of the reason oil prices dropped toward the end of 2018 and into 2019. In 2018, US Daily oil production was near 10.9 million BOPD and grew to 12.9 million BOPD. The US has maintained 10.9 million BOPD in 2021 due to completion of DUCs rather than drilling wells. With the current low rig count and depletion of DUCs, US oil production will decline without a change in rig count.

Figure 1:Baker Hughes Weekly US Land Rig Count - June 4 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Weekly Rig Count - June 4 2021
(Source: Baker Hughes)

Figure 2: US Oil Production - June 4 2021
(Source: EIA)