The latest Baker Hughes rig count report reveals that the number of active drilling rigs in the United States remains steady at 589 this week. While unchanged from the previous week, this total reflects a year-over-year decline of 33 rigs. Despite fewer rigs in operation, U.S. oil production continues to thrive, showcasing record levels of output.
Key National Highlights:
- Total Rig Count: The total active rig count stayed at 589 this week, down from 622 a year ago.
- Oil Rigs: The number of rigs targeting crude oil held at 483, 17 fewer than last year.
- Natural Gas Rigs: Similarly, natural gas rigs remained at 102, a decline of 18 compared to last year.
- Miscellaneous Rigs: The count for miscellaneous rigs stood unchanged at 4.
- Offshore Rigs: Offshore activity also remained steady with 14 rigs.
State-Level Insights:
- Oklahoma: The state maintained its count of 43 active rigs, just one less than the same period last year.
- Texas: The Lone Star State saw a slight drop, with its rig count decreasing by one to 284.
- New Mexico: Rig activity in New Mexico remained constant at 103.
- North Dakota: The state added one rig this week, bringing the total to 36.
- Louisiana: Held steady at 31 rigs.
- Kansas: Gained one rig, reaching a total of 25.
- Colorado, Ohio, Pennsylvania, Utah, West Virginia, Wyoming: No changes were reported in these states, with rig counts holding at 10, 9, 15, 12, 10, and 18, respectively.
Record Oil Production Amid Declining Rig Counts
Despite the reduction in active rigs over the past year, U.S. oil production has reached unprecedented levels. The Energy Information Administration (EIA) reports that the country has been averaging approximately 13.6 million barrels per day (bbl/day) over the past three weeks. This trend underscores the ongoing advancements in drilling efficiency and well productivity.
A Snapshot of Rig Activity
State and regional rig counts offer a window into drilling trends across the U.S.:
- Oklahoma: A notable example of stability, with its rig count reflecting steady investment in local projects.
- Texas and New Mexico: Together, these states dominate U.S. rig activity, accounting for the majority of operational rigs despite slight fluctuations.
- Smaller States: Kansas, North Dakota, and others highlight areas of incremental growth or sustained activity, balancing the national landscape.
What It Means for the Industry
The unchanged rig count this week signals cautious optimism within the oil and gas sector. Producers are leveraging technological advancements to maintain high output levels while managing costs in a volatile market.
For service companies, this consistent activity presents opportunities for collaboration with operators focused on efficiency and innovation. Digital tools, improved workflows, and targeted investments in high-performing basins are likely to shape the industry’s trajectory in the coming months.
As 2024 unfolds, the oil and gas sector will continue navigating a complex landscape of global demand, pricing pressures, and regulatory changes. However, the resilience demonstrated by producers and service providers alike bodes well for the industry’s ability to adapt and thrive.
