This week, declines of one unit each in the Marcellus and Bakken seemed mild compared to a three-rig drop in the Anadarko Basin. But the Permian largely offsets those regional weaknesses.
Exxon Mobil, which analysts say is operating the most U.S. rigs, said March 5 that it would cut about 20% of the 58 rigs it was operating in the Permian Basin this year.
Unconventional rig count is up 16 units this year, or 2.5%, though activity still remains flat when compared to the 4Q19 average. Last week’s tally fell three rigs to 649 on the basis of modest declines in the Eagle Ford and Permian. Some rebalancing is underway this year with modest recoveries in the Midcontinent after last year’s precipitous two thirds decline in activity. With oil prices now below $50 it appears the 1Q20 average may come in flat with compared to activity levels in the final quarter of 2019.
Drillers cut one oil rig in the week to Feb. 28, bringing down the total count to 678, energy services firm Baker Hughes Co. said in its weekly report.
Companies added two oil rigs in the week to Feb. 14, bringing the total count to 678, energy services firm Baker Hughes Co. said in its weekly report.
The oilfield service provider’s rig count averaged 123 in the fourth quarter down from 183 rigs last year, due to a decrease in drilling activity early in the fourth quarter.