Month: August 2016

New Drilling Rig Activity Increases across Three US Basins

LR Commercial Construction, Inc pic
LR Commercial Construction, Inc

A Waco, Texas, entrepreneur, Bert Vandiver guides LR Commercial Construction, Inc., a company that provides solutions to clients in the heavy civil construction and oil field pipeline industries. Bert Vandiver and his team provide services focused on pipelines in the Permian Basin, which has seen a significant increase in activity in the first half of 2016.

Benchmark prices for West Texas Intermediate (WTI) crude oil reached more than $46 in late July. The BOE Report notes that this represents a 40 percent boost in price over the first quarter. Another key industry indicator, the Baker Hughes rig count, takes stock of the drilling rigs active across North America. While production from existing rigs declined, the total number of rigs in play rose by 29 to 336 in the Lower 48 states. This indicates increased new well-drilling activity, which will likely translate into elevated production levels in the medium term.

Particular regions of oil-directed rig activity are those associated with high per-well productivity and legacy production, including the Permian Basin, the Williston Basin, and the Eagle Ford Basin. As a corollary to the increased number of rigs, per-rig productivity is also on the rise across all three basins.