US rig count marks 29 weeks of decline

March 15, 2002
US drilling activity continued to fall with 753 rotary rigs working this week, 16 fewer than the previous week and down from 1,151 during the same time a year ago when activity was climbing, said officials Friday at Baker Hughes Inc., Houston.

By the OGJ Online Staff

HOUSTON, Mar. 15 -- US drilling activity continued to fall with 753 rotary rigs working this week, 16 fewer than the previous week and down from 1,151 during the same time a year ago when activity was climbing, said officials Friday at Baker Hughes Inc., Houston.

Driven by a drop in the natural gas market, the US rig count has traced a general downward spiral for 29 weeks now, with only an occasional temporary uptick. Of the rigs still working, 610 were drilling for gas this week, down 14 from the previous week. Another 142 rigs were drilling for oil, 2 less than last week; and 1 was unclassified.

Land activity bore the brunt of the loss, down 14 rigs this week to 625. The number of rigs drilling offshore was down 2 to 108 in the Gulf of Mexico and 113 in US waters as a whole. Another 15 rigs were working inland waters, unchanged from last week.

There were 220 rigs involved in directional drilling this week, down 7, while 52 were drilling horizontal wells, down 1.

Among the major oil producing states, only California recorded an increase in its rig count this week, up 1 to 22. Texas and Louisiana led the loss, down 5 rigs each to 316 and 147, respectively. Wyoming's rig count was down 4 to 36, while New Mexico was down 1 to 35. Oklahoma's rig count was unchanged at 73.

ODS-Petrodata Group, Houston, reported three more mobile offshore rigs under contract in the Gulf of Mexico. That boosted the utilization rate by 1.5 points to 60.5% with 121 rigs contracted out of 200 available.

Activity was unchanged in European waters, with 90 rigs contracted out of 103 for 87.4% utilization. However, the group reported a net gain of four more rigs under contract worldwide. That put total utilization at 80.2% with 525 mobile offshore rigs under contract out of a total fleet of 655.

Canada had 329 rotary rigs working this week, 10 fewer than last week and down from 458 a year ago.