Rig count drops again…. but

New rigs were also added, so it’s not ALL doom and gloom. Various reports seem to suggest these numbers may not be as accurate as they appear and may not be taking in to account uncompleted projects that were drilled simply to meet deadlines and extensions.

Shale is obviously seeing a slide south judging by the recent reports, and conventional drilling projects of vertical wells have not been as ‘popular’ since the shale boom. Recent reports indicate the need for more conventional drilling projects to offset future declines in production. Conventional drilling projects have the advantage of longevity and more cost effective methods of recovery, and of course one can’t forget the tax benefits of investing in Oil & Gas….so I expect there will be a lot more conventional projects in the near future…. including ours.

“The Permian’s number of active rigs now sits at 417, which accounts for more than half of the nation’s total. “

One of our current “in funding” projects is a conventional vertical well prospect situated in the Permian Basin, if you would like more information on investing in any of our current projects. Please contact us and we would be happy to discuss your participation options.

US Rig Count Plummets by 21

by  Valerie Jones|Rigzone Staff|Friday, October 25, 2019

The Permian now accounts for more than half of the nation’s total number of active rigs.

The U.S. has seen its rig count decline for the second week consecutive week, after snapping an almost two-month streak of declines.

The nation dropped 17 oil rigs and four gas rigs for a net loss of 21 rigs, according to weekly data from Baker Hughes Co. Twenty of them were land rigs and one was an offshore rig.

This brings the U.S.’ total number of active rigs to 830, down 238 from the count of 1,068 one year ago.

Oklahoma led all states in losses with a drop of six rigs. The following states also idled rigs this week:

  • Texas (-5)
  • North Dakota (-2)
  • Wyoming (-2)
  • Louisiana (-1)
  • New Mexico (-1)
  • Pennsylvania (-1)
  • Utah (-1)
  • West Virginia (-1)

Colorado added one rig.

Among the major basins, the Permian dropped five rigs. The Permian’s number of active rigs now sits at 417, which accounts for more than half of the nation’s total.

The Cana Woodford, Marcellus and Williston dropped two rigs each and the Ardmore Woodford and Granite Wash dropped one rig apiece.

The Eagle Ford and the Mississippian gained three rigs and one rig, respectively.

To contact the author, email Valerie.Jones@Rigzone.com

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