US drilling count eases despite rise in Permian rigs: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity eased marginally last week despite producers increasing the number of rigs operating in the Permian Basin, according to the latest report from oilfield services firm Baker Hughes.
The overall count was down one unit at 585 in the week ending 23 August, leaving the total 47 rigs lower on the year and down from 622 at the start of 2024.
Rigs drilling for oil were unchanged at 483, some 29 fewer than at the same stage last year, while rigs drilling exclusively for gas dipped by one unit to stand at 97 and down 18 year-on-year.
Texas, the largest-producing state, added one unit to stand at 274 and 33 lower on the year, while North Dakota was the biggest loser, down two rigs at 33.
The Permian Basin, spanning West Texas and New Mexico, was up three units at 306 and 14 lower on the year, while the Texas Eagle Ford play lost one rig to stand at 47. Anadarko was up four on the week at 36, while Bakken dipped by two rigs to 34.
Baker Hugest also reported some rare changes at smaller fields, including Oklahoma's Arkoma Woodford losing one unit to stand at a single rig, while the Mississippian play in Kansas lost its only two rigs to register zero.
Last week, the EIA said in a report that crude output from the Permian would average a record 6.31 million bpd in 2024 before increasing to 6.63 million bpd in 2025 as energy firms continue to ramp up production from the world's most important hydrocarbon formation.
The Permian has shown steady increases this year, from 6.04 million bpd in Q1 to 6.32 million bpd in Q2 and forecast at 6.39 and 6.4 million bpd in Q3 and Q4, respectively.
In 2025, volumes will also gradually climb, reaching an average of 6.73 million bpd in the fourth quarter.
Prices
Crude prices ended the week marginally lower after recovering most of the early-week losses with a late flourish as sentiment turned slightly more positive.
NYMEX WTI trading on the Chicago Mercantile Exchange closed Friday at $74.83/b for the Sep24 contract, a loss of 1.1% on the week.
Oct24 ICE Brent futures settled at $79.02/b, down 0.8% over the same timeframe.
US natural gas closed the week lower, having surrendered the gains made earlier in the month following another stock build, although on a more positive note, LNG exports are largely back to full capacity.
The Sep24 Henry Hub contract on NYMEX closed 5% lower on the week at $2.02/mmBtu on 23 August and down more than 10% from monthly peaks.
