Eagle Ford leading rig count spike

An increasing amount of rigs are returning to the Eagle Ford shale in southern Texas, as the West Texas Permian Basin becomes more crowded with drilling activity.

This week the U.S. added 13 rigs actively drilling for oil and gas and nearly all of them came to Texas. A total of 11 rigs were added in Texas and five were in the Eagle Ford. The blooming Permian Basin added an additional two rigs, while the Haynesville Shale in East Texas tacked on one more rig, according to weekly data compiled by the Baker Hughes services firm.

There was only one other state to add multiple rigs, Oklahoma, which added three. New Mexico, which is included in part of the Permian Basin, lost three rigs and another three came offline in the Gulf of Mexico.

After being at an all-time low of just 404 rigs in May, the total U.S. rig count is now at 870 rigs, according to Baker Hughes. Of the total amount, 697 of them are primarily drilling for oil.

The Permian now makes up nearly half of all of the nation’s oil rigs, with a grand total of 342 rigs. Texas’ Eagle Ford shale is the second most active area with 83 rigs. Overall, Texas is home to 437 rigs, Oklahoma comes in second with 127 rigs and Louisiana in third with 58 rigs.

This week was quite the jump, but the oil rig count is still own 57 percent from its peak of 1,609 in October 2014, just before oil prices began to drastically decline.

Article written by HEI contributor Lydia Ezeakor.

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