Oil rigs up to 5 to 430; gas platforms climb from 3 to 129
Number of Permian platforms highest since April 2020
Iran nuclear deal could put pressure on Eagle Ford’s business
The number of oil and gas rigs in the United States climbed from eight to 560 during the week ending June 9, rig data provider Enverus said on June 10, as the number of Oil rigs were reaching new heights in 14 months.
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The number of platforms primarily chasing oil climbed from five to 430, the highest since the week ended April 15, while the number of gas-focused platforms rose from three to 129. The number of platforms classified as chasing both oil and gas remained stable at one. .
The nationwide increase was led by a continuing upward trend in drilling activity in the Permian Basin, where the number of rigs climbed from 10 to 253. This was the most big jump of a week in the number of the basin since the beginning of March and pushed the number of platforms to the highest since the week ended April 22, 2020.
But the number of platforms lacked direction across the other named major oil basins.
Operators added two platforms in the Denver-Julesburg game, pushing the active total there to a 12-week high of 15.
In Williston Basin’s Bakken game, the number of platforms was stable at 19.
The number of rigs in the West Texas Eagle Ford Basin was lower for a second week, falling from one to 37. The number of rigs in the Basin is now about 16% lower than its peak in early May and was last lower in the week ended March 10.
In the SCOOP-STACK, operators idled a single platform, leaving a total of 24 in active service. Despite the pullback, the number of drilling rigs in the basin remains near 14-month highs.
Among the main gas-focused areas, the number of rigs was higher only in the Marcellus Shale, where operators added a single rig for a total of 35. Notably, the additional Marcellus rig was added in the liquid-rich part of the basin, while the number of platforms in the dry gas part remained unchanged at 24.
In the adjacent Utica Basin, the number of platforms fell from 1 to 10, marking a 15-week low.
Haynesville’s rig count fell from one to 53 but has remained within the range seen since late April.
Iran nuclear deal could put pressure on Eagle Ford’s demand for condensate
The potential of adding Iranian barrels to the world market if a deal between the United States and Iran is reached on nuclear negotiations could reduce demand for American condensate.
While Iran’s heavier crude grades compete with heavy acid barrels from Saudi Arabia, UAE, Russia, Oman and Venezuela, among others, Iranian condensate could put pressure on the US Eagle Ford condensate market share.
An agreement between the two sides could allow Iran to return to its pre-sanction production levels. Iran produced 2.43 million bpd of crude in April, according to S&P Global Platts’ latest survey of OPEC production, down from pre-sanctions production of between 3.8 and 3.9 million bpd.
This market share, however, could already decline as US exports of condensate fell in 2021 from 2020 and 2019 levels. In the first five months of 2021, US exports of condensate averaged only 10,666 b / d, compared to the 2020 average of 69,588 b / d and the 2019 average of 60,657 b / d, according to data from Kpler, a data intelligence firm, as purchases at Netherlands and United Arab Emirates declined.