Oil experts say rig gain a “silver lining” for year of downturn

Energy Report

ODESSA, Texas (Big 2/Fox 24) – After more than 20 weeks of declines and 14 record lows, Bakers Hughes reported Friday the largest single rig count jump of 2020, now at 254 for the country. Bloomberg reports a “roaring back” of Permian production, but experts here remain bullish. The chairman of the Permian Basin Petroleum Association says the worst days of this year may be behind us.

The US count is up 10 also which says the only 10 rigs that were added back were in the Permian which is kind of the moral of the story, the Permian is more resilient than the other basins, our operating costs or overall finding developing costs are lower so therefore this Basin still works when others don’t have much activity.

Kyle McGraw, Chairman of the P.B.P.A.

Despite the slight comeback, the hurt is still being felt by workers. McGraw says over 118,000 jobs have been lost across the U.S. in oil field related jobs.

It’s going to take something more than this to go back to really hiring and going back to the pace they were at. We are all struggling cash flow wise and it is impacting our balance sheets but this is a real silver lining that says okay maybe the worst is over and we can improve from here.

Kyle McGraw, Chairman of the P.B.P.A.

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