After remaining relatively flat in recent weeks, the US rig count took a sharp jump in mid-October, posting its fourth gain in the last five weeks.
In the weekly rig count it has released since the 1940s, energy services firm Baker Hughes said the US rig count jumped seven rigs to 769, the highest level since March 2020. That’s 226 rigs more than the 543 counted last October.
The number of rigs drilling for crude climbed eight rigs to 610, also the highest since March of 2020 and 165 more than the 445 reported a year ago. The number of rigs drilling for natural gas slipped one to 157, the lowest since July but 59 more than 98 the previous October.
Texas gained five rigs for 365 – 115 more than the 250 at work statewide last year. New Mexico fell four rigs to 109. Louisiana (1), Ohio (2), Pennsylvania (1) and Wyoming (3) were the other producing states to see gains. Alaska (1) and Colorado (1) were the other producing states to see declines for the week.
While the US rig count broke out of its slump, the Permian Basin held steady, adding only one rig for 346 at work across the region. Still, that’s 79 more rigs than the 267 seen last year.
Lea County, New Mexico, remains the most active county in the Permian with 68 rigs, down four for the week and the steepest decline among Permian counties. Eddy County, New Mexico, follows, reporting 38 rigs for a third week.
Martin County and Reeves County each reported 35 rigs for the week – up one for Martin and up six for Reeves – the sharpest jump of the week. Midland County had 31 active rigs for a fourth consecutive week. Loving County had 20 rigs, down one, while Upton County had 19, unchanged for the week. Howard County had 18 rigs, down two. Ward County added two rigs for 15 at work within county lines and Glasscock County had 14 rigs for a fourth week.
Enverus Foundations, part of the energy-focused Software as a Service firm Enverus, reported 897 rigs for the week ended Oct. 12, the highest level in nearly three years. The last time there was 897 U.S. rigs operating was Oct. 18, 2019. The US count rose by 15 from its highest point the previous week and was up by 4% and 38% from its weekly peaks a month ago and a year ago.
Three major plays hit 2022 highs in the last week: The Anadarko and DJ basins each inched up by one rig to 84 and 23, respectively, while the Gulf Coast gained two rigs to reach 119. Meanwhile, Appalachia slid by two to 57; the Permian added one rig to hit 331, tying its previous 2022 high; and the Williston was flat at 42 rigs.
