Permian Rig Count Down Another 27

Another 27 oil rigs have been idled in the US Permian basin, Baker Hughes said in its May 1 rig survey, bringing to nearly 200 the number de-activated since the twin hammer blows of the global Covid-19 pandemic and Saudi-Russia price war fell in early March.

The number of active rigs in the most active shale oil basin in the US dropped to 219 in the week ended May 1 from 246 the week before, the lowest total for the Permian since mid-November 2016; since March 13 this year – two days after the World Health Organisation declared the pandemic and five days after Russia abandoned Opec+ production controls – the number of active rigs in the Permian has fallen from 418.

Across the US, Baker Hughes data shows, 408 rigs were active this week, down 57 rigs – 56 on land and one offshore – from the prior week. The Canadian rig count increased by one, to 27, while one rig was idled in the Gulf of Mexico, dropping the total there to 16.

The number of US oil rigs fell by 53, to 325, while four more gas rigs were idled, reflecting a loss of two each in the Marcellus and Haynesville basins, a loss of one in the Eagle Ford and a gain of one in the category of “Other” basins.