Inside Permian Rig Activity Today
Recent rig trends in the Permian
In the latest US rig count report released by oilfield services company Baker Hughes (BHI), the number of active US rigs drilling for oil grew by six to 747 in the week ended June 16, 2017, as compared to the previous week. There were 337 active oil rigs one year ago.
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US rigs have now increased for 22 weeks in a row, and this trend has been pressuring crude oil prices. (You can read more in Market Realist’s series Traders Are Tracking the US Dollar, Rigs, and Inventories.)
The report noted that as of April 21, 2017, the number of rigs in the Permian Basin was 340. This number represents 40% of the total oil- and natural gas-directed rigs, or 857 rigs operating in the United States. An EIA (Energy Information Administration) report released on April 27 noted that the Permian continues to attract drillers. However, while rig counts have gone up between 2016 and 2017 (see image above), new well oil production per rig has declined during the same period.
Now let’s look at the latest producers and operators who have recently added Permian positions to their portfolio.