The Number of Drilling Rigs in the US Fell to the Level of December 2021
The number of oil and gas drilling rigs in the United States fell by seven to 694 in the week ending September 20.
This is the lowest figure since the end of 2021. And this is not a “drawdown” somewhere in one place. Most basins in the US have either reduced the number of rigs or kept their number the same.
According to oil services firm Baker Hughes, the decline in September was driven by oil-focused drilling rigs, which fell by 11 to 568. These were all vertical wells, which are typically used by private companies on smaller projects. On the other hand, the number of gas producing installations increased by four, to 126 (an increase due to horizontal installations).
Permian Basin lost the most units (4 units), with Eagle Ford Shale and DJ Shale each losing one. In Marcellus, SCOOP-STACK and Utica Shale, the number remained unchanged.
Evercore ISI Group believes that the growth in the number of new drilling rigs in the United States may soon resume, but it will be very modest, and even in 2024, no more than 40-50 units will be added per year.
It would seem that the price of oil is rising again, why not invest in increasing production? Alas, the American oil industry has become too cautious. And the increase in oil service costs does not add incentives.
