Matt Zborowski
Staff Writer
Again boosted by oil-directed units, the tally of active US drilling rigs gained 9 units to 440 during the week ended July 8, marking the fifth time in 6 weeks the overall count has risen, according to Baker Hughes Inc. data (OGJ Online, July 1, 2016).
The count has increased by 32 since its first increase in 41 weeks on June 3, and is down 1,480 units since the overall drilling dive commenced following the week ended Dec. 5, 2014.
BHI also reported that the US rig count in June averaged 417 rigs working, up 9 from the May average and down 444 from the June 2015 average.
In its 2016 Quarterly Well Completion Report, the American Petroleum Institute this week published estimates showing a 69% decline in second-quarter oil well completions compared with year-ago levels.
Exploratory gas well completions in the second quarter fell an estimated 84% year-over-year. So far this year, development well footage has dropped 53% while exploratory well footage has dropped 64%, the report indicates.
Meanwhile, US crude oil production during the week ended July 1 plunged 194,000 b/d compared with the previous week's average, according the US Energy Information Administration's Weekly Petroleum Status Report. The bulk of the weekly drop, however, came from Alaska, which fell 156,000 b/d vs. a Lower 48 decline of just 38,000 b/d.
Total US output during the week averaged 8.428 million b/d, a year-over-year decline surpassing the million-barrel-per-day mark at 1.176 million b/d.
Land, oil rigs set pace
The US oil-directed count jumped by 10 during the week to 351 rigs working, up 35 since May 27. Compared with its peak in BHI data on Oct. 10, 2014, the total is now down 1,258 units.
Natural gas-directed rigs edged down a unit for a second straight week, settling at 88.
Onshore rigs continued their climb, collecting 9 more units for a total of 417. Recording its biggest increase since July 24, 2015, the count of rigs engaged in horizontal drilling jumped by 11 to 343, up 29 units since May 27 and down 1,029 units since a peak in BHI data on Nov. 21, 2014. Directional drilling rigs, meanwhile, dropped for a third consecutive week, relinquishing 2 units to 36.
Offshore rigs and those drilling in inland waters were unchanged for the week at 19 and 4, respectively. The offshore tally remains at its lowest level since Oct. 1, 2010, less than 6 months after the Deepwater Horizon incident.
Among the major oil- and gas-producing states, Texas increased for the sixth straight week, gaining 3 units to 201. The Lone Star State is now up 28 units since May 27 and down 757 units since a peak in BHI data on Aug. 29, 2008.
The Permian rose 4 units to 158, up 24 since May 13. The Barnett increased a unit to 9.
North Dakota and New Mexico each gained 2 units to 28 and 21, respectively. The Williston mirrored the activity of its home state, also with a 2-unit rise to 28.
Oklahoma, Louisiana, and Wyoming each added a unit to reach respective totals of 59, 43, and 8. The Cana Woodford was up 2 units to 28. The DJ-Niobrara and Mississippian each rose a unit to 15 and 5, respectively.
Kansas was the only state to record a loss, with its count halving to 1.
Canada's rig count continued its recent rebound during the week ended July 8, rising 5 units to 81, up 45 since May 6. Gas-directed rigs increased by 3 to 43 while oil-directed rigs increased by 2 to 37. One rig considered unclassified remains operating.
The average Canadian count for June was 63, up 21 from the May average and down 66 year-over-year, according BHI data.