Rig deployment in the US continued to pick up steam during the week ended Feb. 3 as Baker Hughes Inc.’s tally of active units recorded its third consecutive weekly double-digit increase.
The overall count gained 17 units to 729, up 325 since a modern era nadir of 404 touched last May 27 and up 158 units year-over-year (OGJ Online, Jan. 27, 2017). Units targeting crude oil and units drilling horizontally, catalysts of the drilling rebound of the past 8 months, also were up 17 units each during the week.
The Permian, however, had a more subdued week, gaining just 4 units to 295, up 161 since its recent bottom on May 13 and up 115 year-over-year.
The Permian remains a stalwart for future drilling and production activity in the US. Exploration and production firms are continue to plan further rig deployments in the region over the coming year, and, accordingly, production is expected to continue rising.
The US Energy Information Administration projects Permian output to average 2.3 million b/d in 2017 and 2.5 million b/d in 2018. That compares with 2 million b/d in 2016 and 1.9 million b/d in 2015.
Distinguishing itself from the other major oil regions in the US, the Permian features producing zones each more than 1,000 ft thick, EIA notes. “Because of its large geographic size, the Permian offers a lot of potential for testing and drilling, and the multiple stacked plays allow producers to continue to drill both vertical wells and hydraulically fractured horizontal wells,” the agency explains.
Meanwhile, overall US crude production during the week ended Jan. 27 declined 46,000 b/d from the previous week’s average to 8.915 million b/d, EIA said this week. The Lower 48 accounted for 45,000 b/d of the drop while Alaska was the remaining 1,000 b/d.
Oklahoma, Cana Woodford stay hot
With its 17-unit jump, the US oil-directed rig count now totals 583, an increase of 267 since May 27 and 116 year-over-year. Gas-directed rigs and those considered unclassified were unmoved at 145 and 1, respectively.
US onshore rigs gained 17 units to 705, driven by a 17-unit jump in horizontal rigs to 596, up 282 since May 27 and up 138 year-over-year. Directional drilling rigs rose 5 units to 66, up 30 since July 8.
Oklahoma led the major oil- and gas-producing regions during the week, climbing 6 units to 102, nearly double its count on June 24 and above the 100 mark for the first time since Sept. 25, 2015. The Cana Woodford jumped 7 units to 56, up 32 since June 24.
Oklahoma and the Cana Woodford are home to two of hottest regions in the US behind the much larger Permian—the South Central Oklahoma Oil Province (SCOOP) and Sooner Trend Anadarko basin Canadian and Kingfisher (STACK) play.
Last week, Continental Resources Inc. said it plans to operate an average 16 rigs in Oklahoma during 2017. Of the total, 11 will be in the STACK targeting the Meramec and Woodford formations, and 5 in the SCOOP. The firm is slated to operate an average 20 rigs companywide for the year.
Both home to the Permian, Texas and New Mexico each increased 4 units as well to 355 and 46, respectively. Texas is up 182 units since May 27 and up 93 year-over-year. New Mexico has risen 33 units since Mar. 18.
The Eagle Ford’s rebound advanced with a 2-unit climb to 56, up 27 since June 3. Further activity in Texas comprised the Barnett, up 1 to 3; and the Granite Wash, down 2 to 8.
Colorado, Wyoming, and the DJ-Niobrara each gained a unit to 26, 20, and 21, respectively. Alaska also was up 1 to reach 10, while Arkansas’ and the Fayetteville’s only active unit came online this week.
One rig started operations offshore Louisiana, bringing the overall US offshore tally to 22. Two rigs remain operating in inland waters. However, Louisiana’s overall count edged down a unit to 52. The Haynesville, which stretches from Louisiana into East Texas, also fell a unit to settle at 30.
Canada’s recent surge, meanwhile, ended during the week with a 2-unit drop to 343, up 307 since last May 6. Oil-directed rigs lost 3 units to 197 while gas-directed units edged up 1 to 146.
Contact Matt Zborowski at [email protected].
