Permian down 28 Rigs, US Land Rigs Drop to 1673
According to the Baker Hughes Rig Count, US Land Rigs declined -3.6% this week to 1673 from 1735. The horizontal drilling activity is 77% of the total rig count.
Permian Drops 28 Rigs
Permian Basin is -28 compared to previous week and +63 compared to last year at this time. 30% of the US land rigs operate in the Permian Basin. Eagle Ford declined 3 rigs to 197. At this time last year, there were 227 rigs operating in Eagle Ford, -30. Click here to see the interactive weekly insights report.
The 171 rigs running in Williston has 171 down 8 from last week and -8 compared to a year ago. Many Bakken E&P companies expect rigs to decline further in the first quarter as each company renegotiates drilling and well servicing contracts. The Marcellus shale was even this week at 77 rigs and is -9 compared to last year.
Mississippian shale play was -3 week and -4 compared to last year at this time. Niobrara is -2 this week and -5 from a year ago.
There are 50 rigs running in the Granite Wash down 2 this week and -5 compared to a year ago. Utica shale play was -1 this week and +10 from a year ago.
E&Ps Drop Rigs While Drilling Contractors Seek Contracts
- Oasis Petroleum has dropped about $560 MM compared to their 2014 budget to a range of $750 – $850 for 2015 and are prepared to cut it even further in 2016. They are also projecting a drop of 10 rigs in 2015.
- Continental Resources is planning to drop around 20 rigs in 2015 with the biggest change happing in the Bakken with a planned 18 rigs in early January to about 10 rigs through the rest of 2015.
- Helmerich & Payne will have 46 newbuilds under contract with an average of 4 deliveries per month.
- Patterson Drilling has total fleet counts at 143 rigs as of December 2014 and is expecting their rig fleet to rise to 169 in 2015 according to their December 2014 presentation at the Cowen and Company Annual Energy Conference.
- Pioneer Energy Services (formerly Pioneer Drilling Company) has anticipated 5 rigs to go idle in the next 2 – 3 months. The image below shows Pioneer Energy’s fleet: