Colorado’s DJ Basin leads weekly gains as US drilling activity surges
Buoyed by activity gains in the Denver Julesburg (DJ)-Niobrara basin, the number of US rigs rose two units to 771 for the week ended Friday (October 21), according to the provider’s latest count. oil service company Baker Hughes Co. (BKR).
Net changes domestically included an increase of two oil-directed drilling rigs, with natural gas-directed drilling unchanged for the period. The total number of land rigs has increased by one, with one rig added in the Gulf of Mexico. An increase of three horizontal rigs was partially offset by a decrease of one vertical rig.
The combined 771 active U.S. rigs as of Friday compares to 542 running rigs in the year-ago period, according to BKR figures, which are partly based on data. of Enverus.
Canada, meanwhile, dropped six units — all oil-headed — to fall to 210 active rigs on Friday, down from 164 in the year-ago period.
Tracking changes by major drilling region, DJ-Niobrara saw a noticeable week-to-week shift, adding three rigs to bring its total to 20. That’s up from 11 a year ago, according to BKR.
Counting by state, Texas added six rigs per week, while Colorado added two. On the other side of the ledger, New Mexico posted a four-platform decline for the period. Wyoming added a rig, while Louisiana and Utah each dropped a rig from their respective totals, according to BKR data.
The U.S. oil and natural gas industry is hedging less to avoid leaving money on the table, but overall operators appear less optimistic about their ability to borrow funds, according to a recent survey.
“High oil and gas prices do not directly lead to a large increase in the borrowing base,” the researchers at Haynes and Boone LLP said in their Fall Borrowing Base Redetermination Survey. 2022. “Although oil and natural gas prices have reached highs not seen since 2014 (in the case of oil) and 2008 (in the case of natural gas), respondents do not expect a robust increase of the borrowing base in the fall of 2022.
“A significant percentage of respondents predict that borrowing bases will remain stable or even decrease slightly.”
Meanwhile, U.S. producers increased their oil production slightly over the previous week, increasing production by 100,000 bpd to 12.0 million bpd, according to the latest data from the Energy Information Administration. .
Production for the week ended October 14 was up 700,000 bpd from a year earlier, but was below the 2022 peak of 12.2m bpd and far from the record high of 13, 1 million b/d reached in March 2020, before the start of the pandemic.