Rig count still remaining steady

Enverus reported 276 rigs were running in the U.S. as of Sept. 2. The count is down 3% in the last month and down 70% compared to the same time last year.

The industry has not recovered since the end of the second quarter. The Permian Basin, however, remains the most active region.

Enverus also reported that in the Ark-La-Tex region, which is home to the dry gas Haynesville Shale, the rig count is up 19%, or six rigs, since the end of the second quarter with an improving natural gas price outlook. In the Northeast, rig activity has fallen 14%, (five rigs) with the most active state being Pennsylvania. Ohio and West Virginia have also remained steady.

While gas prices are up, NGL prices still remain depressed.

As for oil prices, even though U.S. crude futures are down about 34% since the start of the year due to coronavirus, WTI has gained 140% over the past four months to below $40/bbl (Sept. 4) mostly on hopes global economies and energy demand will return to normal as governments lift lockdowns. Analysts said those higher oil prices have encouraged some energy firms to start adding units. Most firms, however, still plan to keep cutting costs.

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