Tropical storm Emily forces Louisiana activity down
U.S. drilling activity decreased this week, erasing half of the gains from last week, according to Baker Hughes’ Rig Count. A total of four rigs came offline in the U.S. this week, bringing the total number of rigs active in the country down to 954. This change was driven by a sharp decrease in the number of offshore rigs, dropping seven to end the week at 17. This is a decrease of nearly 30% in a week, the largest percentage decrease since the first week of August 2016, one year ago. It seems likely that this decrease in activity is due to tropical storm Emily, which moved through the Gulf earlier in the week. Land activity, by contrast, increased slightly to 934, up three from a week ago.
Oil and gas-targeting rigs both decreased this week, with one oil-targeting rig shutting down and three gas-targeting rigs coming offline. Unusually, vertical rigs increased in activity this week, while horizontal and directional rigs decreased. There are now 807 horizontal rigs active in the U.S., while directional and vertical activity is almost even, with 74 and 73 rigs operational, respectively.
Louisiana saw the largest change in activity, as all of the seven offshore rigs that shut down were in that state. Two onshore rigs came online, though, giving the Pelican State a net decrease of five over the week. Texas added four rigs this week, as activity levels in the state continues to grow. Among the other major states tracked by Baker Hughes, Alaska added one rig while one rig shut down in New Mexico and North Dakota, and two came offline in Oklahoma.
The major basins tracked by Baker saw only minor changes. The Eagle Ford added two rigs, while one came online in the Arkoma Woodford, DJ-Niobrara and Mississippian. One rig shut down in the Williston and three ceased activity in the Cana Woodford. Unusually, there was no change in activity in the Permian.
