With 405 rigs in operation, the Permian Basin now accounts for more than half of the nation’s drilling activity, according to the oilfield services company Baker Hughes. The nation’s rig count stands at 803, down three. The Permian’s total is also down three from last week.
Texas’ rig count stands at 406, down two; New Mexico has 104 rigs this week, down one.
Midland County has 46 rigs, an increase of one. Meanwhile, Reeves, what once was the Permian’s most active county, has 40 rigs, down five. The basin’s leaders continue to be Lea and Eddy counties in New Mexico. Lea has 53 rigs, down two from last week, and Eddy has 50, up one.
Other Permian counties with double-digit counts are Loving, 41, up three; Martin, 31, unchanged; Ward, 25, up one; Howard, 24, down one; Upton, 23, up one; Pecos, 12, unchanged; and Culberson, 10, up one.
Having already spent most of the year’s drilling budget, the holidays traditionally mark a time when exploration and production wind down activity and operators start to think about next year’s capital expenditure budget.
In the background of the end-of-the-year winding down of activity, there is an ongoing shale slump.