Rig Count Update: June 22, 2018

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Houston oilfield services company Baker Hughes reported Friday its weekly rig count report.

Closing Oil Prices – Friday, June 22, 2018

WTI crude oil futures soared $3.04 to settle at $68.58/bbl, marking its biggest one-day percentage and net dollar increase since November 2016, following OPEC’s agreement to lift production; Brent crude also rose, settling $2.50 higher at $75.55/bbl.

The OPEC agreement was meant to cool off rising prices, so the fact that prices rebounded underlines two key messages, according to RBC Capital’s global head of commodity strategy Helima Croft: “Lack of concern for cheating and the challenges of spare capacity.”

RIG COUNT

Weekly Summary: Rigs engaged in the exploration and production in the U.S. fell by -7 for the week ended June 22, 2018, down to 1052.  Land rigs lost 3 down to 1032. The offshore rig count was down 2 at 18.    Rigs drilling in the inland waters were down 2 also, falling to 2 from 4.

Oil Rig Count: The US crude oil rig count fell by 1 to 862 for the week. There are 104 more rigs targeting oil than last year. Rigs drilling for oil represent 81.9 percent of all drilling activity.

US oil rigs tested an all-time high of 1,609 in October 2014. In contrast, the rigs hit 316 in May 2016—the lowest level since the 1940s.

Natural Gas Rig Count: The natural gas rig count – which plunged to its lowest last August – was down 6 to 188. The number of rigs drilling for gas is 5 higher than last year’s level of 183.

Among major oil- and gas-producing states:

Gainers

Alaska gained two rigs and Wyoming added one.

Unchanged

Six states were unchanged this week, namely Arkansas, California, New Mexico, Ohio, Utah and West Virginia.

Losers

Louisiana lost four rigs and Oklahoma decreased by two. Colorado, North Dakota, Pennsylvania and Texas each lost one.

Summary of Major Plays – Ranked By Rig Count

– Permian Basin 474 rigs compared to last week’s 476 rigs

– Eagle Ford 82 rigs compared to last week’s 82 rigs

– Cana Woodford 72 rigs compared to last week’s 72 rigs

– Williston 56 rigs compared to last week’s 57 rigs

– Marcellus 53 rigs compared to last week’s 54 rigs

– Haynesville 53 rigs compared to last week’s 54 rigs

– DJ-Niobrara 26 rigs compared to last week’s 26 rigs

– Utica 23 rigs compared to last week’s 23 rigs

– Granite Wash 16 rigs compared to last week’s 16 rigs

– Arkoma Woodford 8 rigs compared to last week’s 8 rigs

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For more details on the latest national and state news regarding last Friday’s Baker Hughes rig count data, check out the interactive rig count dashboard on the Oklahoma Index tab of our website.

Compiled and Published by GIB KNIGHT

Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma.

SOURCE: Baker Hughes