The Russia-Saudi Arabia oil price war has devastated the oil markets. On March 8th Saudi Arabia initiated price discounts, followed two days later with an increase in production, and Russia followed suit. The increased production, along with the decreased demand due to the coronavirus pandemic has resulted in oil prices dropping to levels not seen since March of 1999.
The Baker Hughes rig count report shows 772 active drilling rigs in the US as of March 20th. The oil rig count is 664 rigs, and the gas rig count is 106. One year ago, the total active land rig count was 1016. Oil rigs are down 160, and gas rigs are down 86 compared to the March 2019 counts.
*Data from March 27, 2020, Baker Hughes Report.
|Bakken Region Total: 49
North Dakota: 48
|Rocky Mountain Total: 155
New Mexico: 109
|Central Plains Total: 39
|Gulf States Total: 45
Louisiana North: 25
Louisiana South (land & offshore): 19
|Texas Total: 368
District 1: 31
District 2: 33
District 3: 7
District 4: 5
District 5: 0
District 6: 15
District 7B: 1
District 7C: 28
District 8: 238
District 8A: 6
District 9: 1
District 10: 3
|Marcellus Total: 48
West Virginia: 15
In the major plays, the Permian Basin rig count is at 408 rigs, down three from last month.
In east Texas, the Eagle Ford shale is at 67active rigs, which is also three fewer than the February count.
The Haynesville shale rig count is at 43 rigs, up two from one month ago.
The Anadarko rig count is 43, which is a decrease of seven rigs from February.
In the Rockies, the active rig count in the Niobrara Shale is 41 rigs. The count is down three rigs over the last month.
The Bakken Shale rig count is 50 rigs, three less than the February count.
The Appalachian has 48 active rigs, down one rig from February.
On February 20th WTI closed at $53.77. Once the price war began, prices have steadily declined to a low of $20.37 on March 18th. Analysts are predicting a rise in prices once Congress settles on an economic stimulus package.
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