U.S. Rig Count Rises Again
Increases noted in the Permian Basin, Gulf Coast and the Powder River Basin.
According to Enverus, U.S. drilling activity increased by 11 active rigs over the last week for a total of 381 running as of November 18. The most notable change in the last week was a 12-rig jump in the Permian Basin to 164, with the Midland Basin accounting for nine of those added rigs at 74. Month over month, the largest increases by major basin were in the Permian and Gulf Coast (up nine).
At one point this year, the rig count fell to zero in the Powder River Basin. As of November 18, six rigs running were added by Ballard Petroleum; Cardinal Oil; EOG Resources; Impaction Exploration & Production; Samson Resources and True Oil.
U.S. crude traded around $42 per barrel this week on hopes of an effective coronavirus vaccine.
Even though the oil contract was down about 32% since the start of the year, it was still up about 121% over the past seven months on hopes global economies and energy demand will return when governments lift coronavirus lockdowns.
“Relatively higher, stable oil prices have incentivized some drilling activity to return after the historic collapse in the rig count in the late spring and early summer,” said Daniel Myers, market analyst at Gelber & Associates in Houston, noting the past rig count increases have “mainly been driven by the oil side.”
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