US active oil rig count relative to Permian Basin

Since last November, the overall US active oil rig count has decreased from 627 to 520 currently, representing a -17% decline. Tracking the rig count by basin shows that the Permian has been the least affected by the slowdown. The Permian rig count has fallen from 350 to 323 currently, representing only a -8% decline overall. The Bakken and Eagle Ford areas have been more strongly affected by the decrease in active oil rigs. The Niobrara play in Colorado and Wyoming has had a relatively low focus over this same time.

As a result of the shifting focus towards the Permian Basin driven by economics, the Permian % of total active oil rigs has grown from 55% last November to 62% currently. The Permian % has remained relatively stable since May so the contraction towards the Permian may being showing signs of ending. This trend may point toward an expansion of oil rigs back into the other basins and overall growth of production in the future. Oil rig count changes often precede produc…