Only a ‘modest’ recovery in rig counts says Enverus

 

A new analysis of oil and gas activity by Enverus indicates only a modest recovery in the U.S. rig count since it bottomed out in July but at the same time, frac crew activity has picked up strongly in some parts of the country.

The data analytics company headquartered in Austin, Texas made the conclusion in its latest FundamentalEdge report which draws heavily from its new Activity Analytics suite.

The report stated that the main driver of the increase in frac crew activity has been the Permian Basin exploration. Operators in the region have been able to restart some activity as prices climbed back to near $40 a barrel.

“To no surprise, the main areas of the Permian seeing a comeback are the Midland and the Delaware basins, particularly in the North Gas and Midland Central sub-plays,” stated the report by Enverus.

The firm said most of the frac crew activity historically has been in the North Gas window of the Delaware but the last half of 2019 saw an uptick in the North Oil window. Since September 2020, the North Gas window took over again as the area with most of the frac crew activity in the Delaware.

The analytical report by Enverus also indicated that the effects of the COVID-19 pandemic continue to be felt around the country’s oil and gas fields.

“Even though the lockdowns were eased in the second quarter and some semblance of normal economic activity has since returned, the recovery witnessed in the U.S. oil patch has been mixed so far,” said the report.

Enverus supplies multiple datasets and information sources using near real-time monitoring of operator movements throughout the U.S. including when a pad is cleared, when rigs arrive and department and when frac crews begin well completions.

Source: Enverus release

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