EOA Rig Count Report

We are bullish on drilling activities in 2023

MAIN TAKEAWAYS

• Drilling activities in 2023 will be bullish if the US economy does not head to a recession.

• The total number of rigs increased by three from the previous week (oil: +2, gas +1).

• The oil-directed rig count in tight oil plays increased by one week-over-week (WoW).

• The oil-directed rig count in the Permian Basin increased by two to 349, the highest since early April 2020.

• High oil prices in 2022 failed to stimulate drilling activities in the Gulf of Mexico (GoM)

IN DETAIL

Although 2022 is coming to an end, companies managed to add more rigs last week. Notwithstanding fears of a recession, the industry appears to be optimistic about next year.