U.S. RIGS PLUNGES

The US drilling rig count plunged 61 units—almost entirely land-based oil rigs—to settle at 1,750 rigs working during the week ended Jan. 9, Baker Hughes Inc. reported.

That total is the lowest since November 2013. The US now has 4 fewer units compared with this week a year ago.

The average US rig count for December was 1,882, down 43 from November but up 111 from December 2013.

During the week, land rigs fell 60 units to 1,684. Offshore rigs edged down a unit to 54. Rigs drilling in inland waters were unchanged at 12.

Oil rigs fell 61 units to 1,421. Rigs considered unclassified lost its only working unit. Gas rigs edged up a unit to 329.

Horizontal drilling rigs plummeted 35 units to 1,301. Directional drilling rigs dropped 14 units to 161.

Canada, coming off a 48-unit loss last week, more than rebounded with a 158-unit spike to 366. Oil rigs represented the bulk of that gain, rocketing 129 units to 181. Gas rigs were up 29 units to 185. Canada still has 111 fewer rigs compared with this week a year ago.

The average Canadian rig count for December was 375, down 46 from November but up 3 from December 2013.

Barclays indicated in its E&P Spending Outlook on Jan. 9 that it expects the North American rig count to "bottom out in the fourth quarter [2015] with operators dropping 500 rigs over the course of the year (OGJ Online, Jan. 9, 2015)."

The worldwide rig count for December, meanwhile, totaled 3,570, down 100 from November but up 92 from December 2013.

Major states, basins

Of the major oil- and gas-producing states, Texas was front and center again, lapping the field several times with its 30 unit drop to 810. That reflected a 28-unit drop in the Permian to 502.

North Dakota was next up with 7-unit loss to 162. The Williston basin, which encompasses much of the state, lost 8 units to 171, its lowest total since August 2011.

New Mexico lost 6 units to 95. Wyoming and Utah each lost 5 units to 51 and 18, respectively. Oklahoma and Kansas each lost 3 units to 206 and 26, respectively. Pennsylvania lost 2 units to 51. Louisiana and Colorado each edged down a unit to 108 and 65, respectively.

Unchanged from a week ago were West Virginia at 28 and California at 22.

Unlike last week, some states reported gains in their rig count. Ohio edged up 1 unit to 47. Arkansas and Alaska each gained 2 units to 13 and 11, respectively.

ogj.com