The US drilling rig count’s surge continued during the week ended Apr. 7 with another 15-unit increase, according to Baker Hughes Inc. data. Twelve of those units started up in the Permian basin.
The overall count has now risen by double-digits 10 times during its 12-week streak of gains (OGJ Online, Mar. 31, 2017). At 839 rigs working, the count is up 443 units year-over-year and 425 units since the bottom of the drilling downturn on May 20-27, 2016.
US oil-directed rigs gained 10 units for the second straight week to 672, up 354 year-over-year and 356 since May 27, 2016. Gas-directed rigs increased 5 units to 165, up 84 since Aug. 26, 2016. Two rigs considered unclassified remained active this week.
US crude oil production is climbing alongside the rig count and is now on the cusp of 9.2 million b/d, according to data from the US Energy Information Administration. Output gained 52,000 b/d during the week ended Mar. 31, with 40,000 b/d coming from the Lower 48 and 12,000 b/d from Alaska.
All 15 of the rigs added this week are land-based, bringing that tally to 813. Horizontal drilling rigs rose 10 units to 695, up 381 since May 27. Directional rigs edged up a unit to 71. Offshore rigs remain at 22, while the count of rigs drilling in inland waters stood still at 4.
Permian lift
The Permian received yet another boost with a 12-unit increase to 331, up 197 since May 13. Texas, however, gained just 7 units, bringing its tally to 418, up 245 since May 27. The Granite Wash lost 4 units to 10, and the Eagle Ford edged down a unit to 72, still up 43 since June 3.
Recently surging Oklahoma added 4 units to bring its count to 122, up 68 since June 24. The Cana Woodford gained 2 units to 50, up 26 since June 24. The Arkoma Woodford edged up a unit to 10. The Mississippian rose 2 units to 8.
Wyoming increased 2 units to 18. Louisiana, New Mexico, and West Virginia each edged up 1 unit to reach 60, 51, and 12, respectively. The Marcellus also added 1 unit and now totals 45, up 24 since Aug. 12. Alaska was the only state to post a decline, edging down a single unit to 7.
Canada’s dive continued this week by shedding 23 units to 132, up 41 units year-over-year. Oil-directed rigs dropped 13 units to 42, while gas-directed rigs decreased 10 units to 90.
BHI also reported Apr. 7 that Canada’s average March rig count fell 89 units month-over-month, causing the global rig count to drop for the first time in 10 months (OGJ Online, Apr. 7, 2017).
The dramatic fluctuations in Canadian drilling throughout the course of a year primarily relate to weather and resulting road closures. During the spring, road restrictions are put into place as snow and ice thaw, limiting movement of rigs, accompanying equipment, and field personnel.
Contact Matt Zborowski at [email protected].