The geographical distribution of the rig fleet also suggests that E&P companies are directing more resources to drilling for tight oil. In February 2011, North Dakota and Texas already were leading all other states in average number of rigs targeting oil, averaging 150 and 390 per week, respectively. The average weekly oil rig count increased to 182 in North Dakota and 692 in Texas in September 2012. These two states, which produce the majority of the oil from the three key basins containing tight formations with liquids, account for more than half the net increase in rigs over this time period. Based on this information, a large proportion of new and existing drilling rigs are expected to be allocated towards liquids in North Dakota and Texas, and many of these rigs likely will be drilling horizontal wells.
U.S. oil production continues to grow
- Beans and hogs reversed recent gains Tuesday night
- Green milk returns in time for St. Patrick’s Day
- Ag markets ended Tuesday in mixed fashion once again.
- Bill would keep farmers' private information private
- Land availability top young farmer concern
- USDA expands support for small, mid-sized farmers and ranchers