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Natural Gas Leads Weekly U.S. Rig Gain

For a change, Texas and the Permian were mostly quiet during the week ending May 26, while Colorado and its Denver Julesburg-Niobrara play posted the strongest gains, adding five rigs and four rigs, respectively, according to Baker Hughes Inc. (BHI).

The rig additions come at a time when northeastern Colorado is dealing with the fallout from a recent home explosion in Firestone that has been blamed on a severed natural gas well flowline.

Giving the Permian its due, not everything was static there. While the basin overall only added one rig during the week, five rigs entered the Delaware sub-basin while four left the Midland, so there was something going on.

Overall, seven U.S. rigs came back, all of them land-based. Canada added eight rigs to bring the North American tally to 1,001. It stood at only 447 one year ago.

Five U.S. natural gas rigs came back along with two oil rigs. The Canadians redeployed four of each.

Preliminary Texas March Production

Texas preliminary production for March as reported to the Railroad Commission of Texas (RRC) is 77.26 million bbl of crude oil and 608.01 Bcf of total gas from oil and gas wells. These preliminary figures are based on volumes reported by operators and will be updated as late and corrected production reports are received. Texas production in March came from 177,719 oil wells and 90,804 gas wells.

Production reported for March 2016 was 77.70 million bbl of crude oil, which was later updated to a current figure of 87.21 million bbl; and 638.38 Bcf of total gas, which was later updated to a current figure of 710.70 Bcf.

RRC said on Wednesday that from April 2016 to March 2017, total Texas reported production was 980 million bbl of crude oil and 7.9 Tcf of total gas. Crude oil production reported by the Commission is limited to oil produced from oil leases and does not include condensate, which is reported separately.

The Federal Reserve Bank of Dallas said in a recent note that total Texas oil and gas employment climbed again in March, adding 3,500 jobs to reach about 211,700. “Texas oil and gas extraction employment increased slightly to 92,500 jobs, and payrolls in support activities for mining rose to 119,200,” the Fed said. “This is the third consecutive month of increases in total Texas oil and gas employment.”

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