Baker Hughes US Land Weekly Rig Report - July 23 2021

This week, the Baker Hughes US Land Rig Count increased by 7 rigs to finish at 473 active rigs. The Permian added 4 rigs, the MidCon added 3 rigs, the Rockies Other (Non shale plays) added 2 rigs while the ArkLaTex region lost 2 rigs.

With gas prices approaching three year highs and oil prices above $70, US producers continue to show restraint on increasing drilling activity. The publicly traded companies remain focused on reducing debt and showing/returning profits to investors. Even with the reduced drilling activity, US Oil production continues to remain above 11 MMBOPD. This is mainly due to the increased efficiencies in drilling and completions. A recent Rystad Energy presentation showed a horizontal rig count of between 320 and 330 rigs was required to maintain current US production. This is down significantly from required rig count of more than 800 rigs through 2018 and 2019. 

Figure 1: Baker Hughes US Land Weekly Rig Count - July 23 2021
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Weekly Rig Count by State - July 23 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - July 16 2021

This week, the Baker Hughes US Land Weekly Rig Count increased by 5 rigs to finish at 466 active rigs. The Powder River Basin added 3 rigs and the Permian and MidCon each added 1 rig. The ArkLaTex region lost 1 rig in the last week.

In the past week, the members of OPEC came to a production agreement for the rest of the year, slightly increasing production. There were concerns that the OPEC members wouldn't come to an agreement which could result in unconstrained production. This agreement has increased production rates but kept a lid on total production. Oil prices have dropped in the last week due to this agreement. Since US producers continue to exercise restraint on production increases, OPEC decisions will have the largest impact on oil prices in the short term.

Figure 1: Baker Hughes US Land Weekly Rig Count - July 16 2021
(Source: Baker Hughes)

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

Baker Hughes US Land Weekly Rig Report - July 2 2021

This week, the Baker Hughes US Land Rig Count increased by 5 rigs to finish at 459 active rigs. The DJ Basin added 2 rigs while the Bakken, Permian and Northeast each added 1 rig.

After their long slumber, the Bakken and the DJ Basin have both added rigs in the last couple of weeks. While this increase in activity isn't close to a return to normal, it's nice to see some activity return to the area. Figure 2 shows the Bakken and DJ Rig Count from 2018 to today. The DJ Basin reached a high of 32 rigs in early 2019 while the Bakken averaged nearly 55 rigs from mid-2018 to late 2019. With consolidation in the DJ and reduced Tier 1 acreage in the Bakken, there should be not expectation that we will return to these levels.

Figure 1: Baker Hughes US Land Weekly Rig Count - July 2 2021
(Source: Baker Hughes)

Table 1: Baker Hughes Weekly US Land Rig Count by State - July 2 2021
(Source: Baker Hughes)

Figure 2: Bakken and DJ Basin Rig Count since 2018
(Source: Baker Hughes)