Rig count stable since end of May

Since the end of May, the U.S. rig count has stabilized at around 300 operating rigs. According to Enverus, there were some increases—five new rigs in the Delaware and Midland basins (two by Exxon Mobil) and three in Eagle Ford (one by Marathon Oil, which hasn’t has had three active rigs in the play since the end of April). This is the third week in a row that oil and gas rigs were added to the U.S. rig count.

The number of rigs running at the end of the third quarter was up 18% compared to the end of the second quarter. During the same period, every region saw an increase except the Northeast, which dropped one rig to 36. Activity in the Rockies has hovered around 17 rigs. Meanwhile, the Ark-La-Tex has also remained stable and the Midcontinent region has about 97 rigs running.

U.S. oil prices are still down about 39% since the start of the year despite WTI crude futures gaining 100% over the past six months to around $37/bbl.

While some firms are optimistic because of the oil price, Enverus said many remain skeptical because of the seemingly unending increases of new U.S. and international coronavirus cases (currently more than 35 million worldwide and 7.5 million in the U.S.) and uncertainty and anxiety around the upcoming U.S. presidential elections.

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