The Permian region, which is currently the United States’ most prolific basin, continues to experience strong drilling activity. According to Baker Hughes (BHI), the rig count in the region increased to 444 as of March 23, compared to 398 by the end of last year. This growth represents an increase of 46 rigs. Moreover, the Permian region currently has the most DUCs (drilled but uncompleted wells).
SCOOP and STACK plays
Drilling activity in the Anadarko region, which includes the SCOOP and STACK plays, has come down from its 2017 highs. However, the number of rigs operating in the region are still higher than the levels we saw during the same period of last year. ONEOK (OKE), DCP Midstream, and Targa Resource Corporation have a strong presence in the region.
Drilling activity in DJ-Niobrara Basin, which includes the DJ Basin, has remained weak for most of 2017 and 2018. The rig count in the region has decreased to 24 as of March 23 from 26 by the end of last year, which is a concern for Western Gas Partners and DCP Midstream since they have a significant presence in the DJ Basin.
Eagle Ford Region
Drilling activity in the Eagle Ford region has picked up in recent weeks. Rig counts in the region increased to 72 as of March 23, compared to 70 by the end of last year. Moreover, the region currently has the second-highest DUCs among all shale regions. DCP Midstream and Targa Resources Corporation have a significant presence in the region.
In the next part of this series, we’ll look into the capital spending plans for the four peers.