Crude oil prices are holding above $60 a barrel. Rising U.S. crude production combined with higher oil rig counts and shale operators’ revised forecasts suggest that the trend will continue, offsetting output curbs by OPEC and Russia.
Neither the threat of steel tariffs—which some analysts believe could increase pipeline and other oil infrastructure costs—nor US crude oil production, which rose again in the week ending March 2nd to 10.369 million bpd, were able to keep oil prices down for the week.
Weekly Summary: Rigs engaged in the exploration and production in the U.S. gained 3 for the week ended March 9, 2018, up to 984. Land rigs climbed up 4 to 967. The offshore rig count was minus 1. Rigs drilling in the inland waters remained flat for the week.
Oil Rig Count: The US crude oil rig count fell by 4 back down to 796 for the week. There are 179 more rigs targeting oil than last year. Rigs drilling for oil represent 80.8 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 – went up by 7 rigs, gaining to 188. The number of rigs drilling for gas is 37 higher than last year’s level of 151.
Among major oil- and gas-producing states, Texas increased by seven rigs, North Dakota gained three and Colorado and Pennsylvania each increased by one.
Oklahoma decreased by four rigs, Alaska lost two rigs and Louisiana, New Mexico and Utah each decreased by one.
Arkansas, California, Ohio, West Virginia and Wyoming were unchanged.
Summary of Major Plays – Ranked By Rig Count
– Permian Basin 436 rigs compared to last week’s 434 rigs
– Eagle Ford 70 rigs compared to last week’s 70 rigs
– Cana Woodford 62 rigs compared to last week’s 68 rigs
– Williston 51 rigs compared to last week’s 48 rigs
– Marcellus 57 rigs compared to last week’s 56 rigs
– Haynesville 51 rigs compared to last week’s 51 rigs
– DJ-Niobrara 24 rigs compared to last week’s 25 rigs
– Utica 23 rigs compared to last week’s 23 rigs
– Granite Wash 12 rigs compared to last week’s 12 rigs
– Arkoma Woodford 8 rigs compared to last week’s 7 rigs
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.
Thank you for your continued support and keep an eye out for this week’s recap on Friday Snippets!
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.
