Modest Recovery in Oil Count Lifts U.S. Drilling Totals in Latest BKR Data

 

BY JEREMIAH SHELOR

March 24, 2023

Bolstered by a modest rebound in oil activity, the U.S. rig count rose four units to finish at 758 for the week ended Friday (March 24), according to the latest figures from oilfield services provider Baker Hughes Co. (BKR).

Domestic gains were driven by a four-rig increase in oil-directed drilling, raising total U.S. oil rigs to 593 for the period. The U.S. oil count recently peaked in late 2022 at 627 and has been trending lower throughout 2023.

 

U.S. natural gas-directed drilling, meanwhile, held steady at 162 rigs during the week ended March 24.

 

Land drilling was up three rigs, and one rig was added in the Gulf of Mexico. Gains included three directional rigs and one vertical rig, with total horizontal rigs unchanged week/week.

 

The combined 758 active U.S. rigs as of Friday compares with 670 rigs running in the year-earlier period, according to the BKR numbers, which are partly based on data from Enverus.

 

The Canadian rig count shed 42 rigs on the week to fall to 165, up from 140 in the year-ago period. Declines included 36 oil-directed rigs and six natural gas-directed units, according to BKR.

 

Looking at changes by major drilling region, the Permian Basin led with an increase of three rigs on the week, bringing its total to 353, up from 319 in the year-ago period. Elsewhere among plays, the Cana Woodford and Denver Julesburg-Niobrara each added a rig, while the Granite Wash and Mississippian Lime each dropped one rig.

 

In the state-by-state totals, New Mexico added two rigs for the period, while Colorado, Louisiana and Texas each added one. Oklahoma, meanwhile, posted a one-rig decline for the period, the BKR data show.

 

American exploration and production (E&P) firms boosted output by 100,000 b/d to 12.3 million b/d for the week ended March 17, according to the U.S. Energy Information Administration’s (EIA) latest Weekly Petroleum Status Report.

 

The print matched the 2023 peak and the production pinnacle since the onset of coronavirus outbreaks in early 2020. E&Ps posted a record 13.1 million b/d of output in March of that year, just prior to public health officials declaring the global pandemic.

 

The latest EIA result also far exceeded the year-earlier level of 11.6 million b/d.

Source: https://bit.ly/3FQ6zzN

        ( www.naturalgasintel.com  )