Rig count increases 4% in the last month


The U.S. rig count is up 4% over the last month and up 95% in the last year, according to Enverus Rig Analytics. The largest week-over-week changes occurred in the Gulf Coast, where four rigs were added.

All major plays tallied month-over-month increases except the Anadarko Basin, which was flat. The Permian added the most rigs (seven), with an increase of three on the New Mexico side, to 75, and four more on the Texas side, to 162.

The most notable county-level change was in New Mexico’s Lea County, the most active county in the Permian Basin where five rigs have been added. Mewbourne Oil has added the most rigs in Lea County over the last month, with three new rigs bringing its total to seven. Only EOG Resources is running more rigs in Lea at nine, up by two on the month.  Following Lea in terms of activity is Midland County, Texas, where 29 rigs are running.

WTI crude futures in the U.S. this week rose to their highest since 2014 and were trading around $84/bbl on Oct. 22 on concerns about tight supply and low stockpiles. With oil prices up about 72% so far this year, some energy firms said they plan to boost spending in 2021 after cutting drilling and completion expenditures in 2019 and 2020.

U.S. oil production is expected to slide from 11.3 million bbl/d in 2020 to 11 million bbl/d in 2021 before rising to 11.7 million bbl/d in 2022, according to government projections. That compares with the all-time annual high of 12.3 million bbl/d in 2019.


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