Louisiana’s oil and gas sector saw a modest slowdown this week, with declining rig counts across both North and South Louisiana, while offshore activity held steady. Despite the dip in drilling activity, permitting remains active and key operators continue to maintain a strong presence in the Haynesville and Gulf Coast regions.
Commodity Price Snapshot
Market pricing showed mixed movement this week:
- WTI Crude: $91.24 (down)
- Louisiana Light Sweet (LLS): $102.11 (up)
- Henry Hub Natural Gas: $2.96 (down)
The divergence between crude benchmarks and natural gas highlights ongoing volatility in gas markets, particularly relevant for Haynesville-focused operators.
Rig Count Overview
- Total Louisiana Rig Count: 43 rigs (down)
- North Louisiana (Haynesville): 25 rigs (down)
- South Louisiana: 7 rigs (down)
- Offshore (Gulf of Mexico): 11 rigs (flat)
The decline was primarily driven by reduced onshore activity, while offshore operators maintained stable drilling programs.
Top 5 Operators – Louisiana Rig Report
| Operator | Rig Count | Contractor & Rigs |
|---|---|---|
| Apex Natural Gas, LLC (“APEX”) | 7 | Precision 609, Independence 335, Independence 336, Independence 334, Precision 576, Precision 614, Scan Explorer |
| Expand Energy | 5 | Expand 502, Expand 504, Expand 503, Cactus 149, Cactus 141 |
| BPX | 3 | H&P 420, H&P 424, H&P 256 |
| Aethon Energy | 3 | Precision 577, Scan Legacy, Cactus 137 |
| EXCO Resources, Inc. | 2 | H&P 528, H&P 536 |
Operator Insights and Market Commentary
Apex Natural Gas Leads Haynesville Activity
Apex stands out as the most active operator this week with 7 rigs deployed, primarily across Independence and Precision rigs. This level of activity suggests continued confidence in Haynesville gas economics despite lower Henry Hub pricing.
Expand Energy Maintains Strong Position
With 5 rigs running, Expand Energy continues to be a major force in the region. Their mix of in-house (“Expand”) and third-party contractors like Cactus highlights a flexible drilling strategy.
BPX and Aethon Show Consistent Mid-Tier Activity
Both operators reported 3 rigs each, maintaining steady programs. BPX’s reliance on Helmerich & Payne (H&P) rigs indicates a preference for high-spec rigs, while Aethon continues to diversify across contractors.
EXCO Resources Holds Targeted Positions
EXCO’s 2 rigs suggest a more selective drilling approach, likely focused on core acreage optimization rather than expansion.
Permitting Activity Signals Continued Development
- 1 offshore permit issued to Anadarko Petroleum
- 9 onshore permits across:
- Caddo
- Natchitoches
- Red River
- Plaquemines
- St. Landry
- Winn
While rig counts declined, permitting activity indicates that operators are continuing to plan future drilling programs.
What This Means for the Market
The combination of:
- Lower rig counts
- Stable offshore activity
- Continued permitting
suggests a short-term pause rather than a structural slowdown.
For service companies and suppliers, the opportunity remains concentrated among a small group of highly active operators, particularly in the Haynesville.
Key Takeaways for Sales & Business Development
- Focus on Apex and Expand Energy → highest immediate activity
- Engage contractors like Precision, H&P, and Cactus → strong rig presence
- Monitor permits → early signal of upcoming drilling demand
- Target Haynesville region → still the core of Louisiana activity
For more detailed data and weekly updates, visit the Louisiana Office of Conservation and stay connected with the Louisiana Oil & Gas Association (LOGA).
Author: phinds
