US drill count unchanged despite Permian rig drop: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity was unchanged on the week despite the giant Permian Basin surrendering two more units, according to the latest weekly report from oilfield services firm Baker Hughes.
The overall count was unchanged at 600 in the week ending 31 May, leaving the total at 96 rigs below the same stage last year and down 22 since the start of 2024.
Rigs drilling for oil were down one at 497 units, 59 fewer than at the same stage last year, while rigs drilling exclusively for gas added one unit to stand at 99, but still down by a third on the year.
Texas, the largest-producing state, was unchanged at 287, while no other states reported a move of more than one rig.
The Permian Basin, spanning West Texas and New Mexico, was down two units at 310 and is now down 38 on the year, offset by single rig gains at Eagle Ford and Marcellus.
Baker Hugest also reported some rare changes at smaller fields in Oklahoma. Ardmore Woodford added three rigs to stand at seven, but the nearby Cana Woodford lost four units, falling to 17.
Meanwhile, the latest consolidation in the shale sector will see ConocoPhillips acquire Marathon Oil in a $22.5 billion deal, boosting Conoco's portfolio in the Permian, Bakken and Eagle Ford basins.
Prices
Crude oil prices again tested three-month lows last week before steadying, although most shale plays still remain profitable despite the sharp rise in operating costs.
NYMEX WTI trading on the Chicago Mercantile Exchange closed Friday at $76.99/b for the Jul24 contract, a drop of 0.95% on the week as benchmarks remained under pressure due to concerns over the likely slow pace of US rate cuts.
Front-month Jul24 ICE Brent futures settled at $81.11/b, down 0.9% over the same timeframe.
Meanwhile, US natural gas steadied after surrendering some of the solid May gains in the previous week as production continues to outstrip demand. According to the latest EIA report, producers injected 84 billion cubic feet of gas into storage during the week to 24 May, above the 78bcf build analysts had called for in a Reuters poll.
The Jul24 Henry Hub contract on NYMEX closed at $2.59/mmBtu on 31 May, down 7% on the week.
