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