New Year Begins With a Decline in U.S. Oil and Gas Rigs

U.S. Oil and Gas Rig Count Drops Again

New figures released by Baker Hughes this week reveal that the number of active oil and gas drilling rigs in the United States decreased by four, bringing the current total to 544. This marks a decline of 40 rigs compared to the same period last year.

According to the report, oil rigs fell by three, leaving 409 in operation—71 fewer than a year ago. Gas rigs also dipped by one, now totaling 124, which is actually 24 more than last year. Meanwhile, the count for miscellaneous rigs increased by two.

Production and Completion Activity Update

Data from the U.S. Energy Information Administration (EIA) indicates that average weekly crude oil output in the U.S. slipped by 16,000 barrels per day for the week ending January 2, settling at 13.811 million barrels per day. This is 42,000 barrels per day below the record high set just a month earlier.

Primary Vision’s Frac Spread Count, which estimates the number of crews completing oil and gas wells, also declined during the week ending December 30, dropping to 153. This means there are now 48 fewer active completion crews compared to the start of the year.

Regional Rig Activity

In the Permian Basin, the active rig count fell by three to 244, which is 60 fewer than the previous year. The Eagle Ford region maintained its rig count at 40, down by three from the same time last year.

By Julianne Geiger for Oilprice.com