In this week's news, the U.S. rig count climbed by 14 this week to 553; Precision Drilling in Canada has announced it is hiring back 1,000 employees; and Anadarko Petroleum is planning to triple production in West Texas
Oilfield services company Baker Hughes reported Oct. 21 that U.S. oil and natural gas drillers brought 14 rigs online in the latest week to 553.
The Houston-based company says the number of rigs seeking oil climbed 11 to 443 and those looking for natural gas went up by 3 to 109. Two rigs were reported as miscellaneous.
Among the major oil and gas producing states, Texas jumped up by 10 rigs, while Wyoming went up three and New Mexico was up two. Utah and Alaska each climbed up one.
Louisiana lost two rigs and Colorado lost one. West Virginia, Pennsylvania, Oklahoma, Ohio, North Dakota, Kansas, California and Arkansas all remained unchanged.
Anadarko Petroleum Plans to Increase Production in Permian Basin
Anadarko Petroleum has cut its drilling budget in the Eagle Ford to focus on the Permian Basin in West Texas, where it plans to triple production over the next five years, according to the company.
The Houston-based company has cut spending in the Eagle Ford almost in half and is searching for a new regional office in Midland.
Anadarko, which operates at least six drilling rigs in the Delaware sub-basin, hopes that it can increase production from 41,000 barrels a day to 130,000 a day by 2021.
Precision Drilling Brings Back 1,000 Employees
Precision Drilling Corp., one of Canada’s largest drilling companies, has brought back 1,000 employees and begun increasing the price it charges customers for its specialized rigs in a sign that oilfield activity levels are beginning to recover.
The company says that it is in the early stages of this rebound and had reactivated 53 rigs in North America. The majority of those oilfield workers hired were previously with Precision.
Precision increased its capital budget for the tail end of 2016 by $20 million. The driller now plans to spend $222 million total over the course of this year.