Baker Hughes US Land Weekly Rig Report - August 27 2021

This week, the Baker Hughes US Land Rig Count increased by 5 rigs this week to finish at 490 active rigs. The Permian added 2 rigs, the Powder River Basin added 2 rigs and the MidCon added 1 rig.

After plateauing earlier in the summer, the US Land rig count has had a slow and steady crime over the last 12 weeks. Thee Permian Basin seen a flat rig count through earlier June and July but has increased steadily over the last 7 weeks. While most forecasts show flat or slow growth through 2022, the recent growth in rig count is very positive indication.

Figure 1: Baker Hughes US Land Rig Report - August 27 2021 
(Source: Baker Hughes)

Table 1: Baker Hughes US Land Rig Report by State - August 27 2021
(Source: Baker Hughes)

Baker Hughes US Land Weekly Rig Report - August 20 2021

This week the Baker Hughes US Land Weekly Rig Report increased 1 rig to finish at 485 active rigs. The Permian added 2 rigs and the Rockies Other (Utah) added 1 rig, while the ArkLaTex and Eagle Ford region each lost 1 rig. 

Over the last 7 weeks, the ArkLaTex rig count has decreased from a high of 54 rigs down to 47 rigs. Even though gas price has increased significantly over the last couple of months, this region that is dominated by gas drilling has seen a decrease in rig count. The Baker Rig Count does not show the detail of individual operators and this decrease could be the result of consolidation in the region.

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

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

Baker Hughes US Land Weekly Rig Report - August 13 2021

This week the Baker Hughes US Land Rig Report increased 8 rigs to finish at 484 active rigs. The Bakken added 4 rigs, Eagle Ford added 3 rigs, the Permian added 2 rigs and the West Coast added 1 rig. The ArkLaTex region lost 2 rigs this week. 

Oil prices were down this week in response to speculation of decreased demand due to increased Covid cases. While nation wide lockdowns appear unlikely, personal responsibility may result in less travel and work from home. Covid cases will continue to rise over the next several weeks as schools restart and uncertainty about Covid response continues.

Baker Hughes US Land Weekly Rig Report - August 13 2021
(Source: Baker Hughes)

Baker Hughes US Land Rig Report by State - August 13 2021
(Source: Baker Hughes)

Baker Hughes Weekly US Land Rig Report - August 6 2021

This week, the Baker Hughes Weekly US Land Rig Report increased by 7 rigs this week to finish at 473 active rigs. The Permian added 4 rigs, MidCon added 3 rigs, Rockies Other (Utah) added 2 rigs and the ArkLaTex lost 2 rigs.

Operators and service companies have been announcing their 2nd quarter results over the last couple of weeks. Most of the operators have shown considerable profits and are focused on paying down debt and/or returning profits to investors. The service companies results have improved but do not match the results of the operators. Service companies continue to fight for market share at the cost of profit while operators benefit from low prices. As service companies consolidate and reduce the number of choices in the market place, they will stop fighting each other for market share and generate a profit that can be spent on CapEx, debt or investors.

Figure 1: Baker Hughes Weekly US Land Rig Report - August 6 2021
(Source: Baker Hughes)

Table 1: Baker Hughes Weekly US Land Rig Report by State - August 6 2021
(Source: Baker Hughes)