EOA Rig Count Report
MAIN TAKEAWAY
We maintain our view that given current oil prices, drilling activities remain robust so far with increases in the oil rig count—specifically in the Permian— and the gas-directed rig count.
IN DETAIL
The total rig count increased by 2 from 753 to 755, according to Baker Hughes. While the oil-directed rig count was flat WoW, companies reduced the rig count in Cana Woodford by 2, and by one in each of Eagle Ford, Arkoma Woodford, and Granite Wash.
In the Permian, the oil rig count increased by 3 to 357, the highest since March 2020. Companies added three rigs outside the tight plays, including 1 in the Gulf of Mexico where the rig count reached 19.
As for the gas-directed rig count, it increased by 2 to 161. The Utica and the Marcellus added 1 each, in addition to a third one in the non-tight gas area. In Haynesville, meanwhile, companies reduced the gas rig count by 1.
Figure (1) below shows the total number of oil and gas rigs.
Figure (1)
Figure (2) below shows the year-over-year (YoY) trends in the number of the oil-directed rig count in the tight oil plays.
Figure (2)
Figure (3) below shows the trends in the oil-directed rig count in various tight oil plays. It also indicates that it is mostly about the Permian!
Figure (3)
Rigs by Type
The US shale revolution has drastically changed the makeup of rigs, leading to an increase in the number of horizontal rigs as shown in Figure (4) below.
Figure (4)
Figure (5)
