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Update: Permian Rig Counts and New Well Production

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Permian rig counts

In the latest US rig count report released by Baker Hughes (BHI), the number of active US rigs drilling for oil grew by four to 804 last week, compared to the previous week. In comparison, there were 652 active oil rigs a year ago.

The report noted that, as of March 23, the number of rigs in the Permian Basin was 444. This number represents ~45% of the total oil- and natural gas–directed rigs, or 995 rigs operating in the United States.

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New well production

As you can see in the image above, the Permian rig counts have gone up between 2016 and 2018. New well oil production per rig had initially risen between 2016 and 2017 and then declined. Since the end of 2017, and up until recently, new well oil production per rig had been rising. Top Permian players include Concho Resources (CXO), Apache (APA), and Chevron (CVX).

In the next part of this series, we’ll discuss productivity in the Permian in more detail.

 

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