Permian tally rises to 130

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The U.S. rig count continues to claw its way back from record lows brought about by the COVID-19 pandemic and oil market crash.

The U.S. rig count continues to claw its way back from record lows brought about by the COVID-19 pandemic and oil market crash.

James Durbin/Midland Reporter-Telegram

The U.S. rig count continues to claw its way back from record lows brought about by the COVID-19 pandemic and oil market crash.

Baker Hughes, which has tracked the rig count weekly since the 1940s, reported Friday that the rig count posted its fourth consecutive rise, rising three rigs to 269 at work nationally. There were 193 rigs drilling for oil, up four for the week, and 73 drilling for natural gas, down one for the week. The rig count is 587 rigs below the 856 at work this time a year earlier.

Texas added three rigs for 116 at work statewide, down 304 from the 420 Baker Hughes reported last year.


New Mexico joined Texas as the only producing state to gain rigs, rising one to 45. Pennsylvania was the only producing state to decline, dropping one rig.

The Permian Basin added one rig to 130 but is 291 rigs below the 421 a year ago.

Eddy County, New Mexico, remains the most active in the Permian with 25 rigs, up one. Lea County, New Mexico, followed with 20 rigs, unchanged for the week.

Martin County reported 18 rigs at work within county lines, the same as the previous week. Midland County had 16 rigs, down one for the week.

Cochran County saw renewed activity with one rig at work, while Borden, Hockley and Yoakum counties didn’t have any activity this week.

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In its weekly release, Baker Hughes Company BKR reported an increase in the U.S. rig count.

More on the Rig Count

Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry.

A change in the Houston-based oilfield service player’s rotary rig count affects demand for energy services like drilling, completion and production, provided by the likes of Halliburton Company HAL, Schlumberger Limited SLB and Transocean Ltd. RIG.

Details

Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 266 in the week through Oct 2 versus the prior-week count of 261. Thus, the tally increased for three weeks in a row. The current national rig count is, however, below the year-ago level’s 855.

The number of onshore rigs in the week ending Oct 2 totaled 251 compared with the prior-week count of 246. Notably, the count of rigs operating in inland waters was one, same as the prior-week tally. Moreover, in the offshore resources, 14 rigs were operating, also flat with the prior-week count.

US Adds 6 Oil Rigs: Oil rig count was 189 in the week through Oct 2, compared with 183 in the week ended Sep 25. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is below the year-ago 710.

Natural Gas Rig Count Falls in US: The natural gas rig count of 74 was lower than the prior-week count of 75. Moreover, the count of rigs exploring the commodity is below the prior-year week’s 144. Importantly, per the latest report, the number of natural gas-directed rigs is 95.4% below the all-time high

  • As of Tuesday, roughly 3.6 million homeowners remain in pandemic-related forbearance plans. That’s 6.8% of all active mortgages, representing $751 billion in unpaid principal.
  •  The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year.



a car parked in front of a house: Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that's proving a key source of strength for the economic recovery.


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Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that’s proving a key source of strength for the economic recovery.

The number of mortgages in active pandemic-related bailout plans rose by 21,000 in the past week after declining for six straight weeks, according to Black Knight, a mortgage technology and analytics firm. 

The increase was not across all mortgage types but among bank-held and private-labeled security loans (28,000), and, to a lesser extent, among FHA/VA loans (2,000). Those increases were offset by a decline of 9,000 Fannie Mae and Freddie Mac loans in forbearance.

The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year. Forbearance is granted in three-month terms, and so far more than 75% of borrowers in bailouts are on extensions since March.

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“As of the 29th [of September], nearly 800,000 forbearance plans were still set to expire in September, down from 2 million at the start of

TOKYO (Reuters) – Japanese household spending is expected to have fallen for a 11th straight month in August, a Reuters poll found on Friday, suggesting the coronavirus crisis is still weighing heavily on consumer confidence.

Analysts say the economy is rebounding gradually after suffering its worst post-war contraction in the second quarter, but the jobs and wage situation remain weak.

New COVID-19 cases in Japan have been on a general downward trend recently but appear to be levelling off.

Household spending likely fell 6.9 % in August from a year earlier, the poll of 14 economists showed, after a 7.6 % fall in July.

Compared with the previous month, household spending is forecast to have risen 3.2% in August from a 6.5% decline, the poll found.

“As the coronavirus cases resurged in Japan, people’s self-restraint stance towards spending on entertainment and tourism persisted,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

Wage pressures such as lower summer bonuses are expected to result in lacklustre consumer spending for some time, he added.

The government will announce household spending data at 8:30 a.m. on Oct. 9 (2330 GMT, Oct. 8).

The government is continuing to urge restaurants and shops to take measures to prevent infections, such as giving enough distancing and good ventilation to customers.

Other data next week is expected to show the current account balance was in a surplus of 1.98 trillion yen ($18.74 billion) in August, up from 1.47 trillion yen in July, partly helped by a pickup in exports on the back of the global economic recovery, analysts said.

The finance ministry will release the current account balance on Thursday.

(Reporting by Kaori Kaneko; Editing by Kim Coghill)

Copyright 2020 Thomson Reuters.

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WASHINGTON — A critical snapshot of the job market and the economy to be released Friday is expected to show a further deceleration in hiring as the nation’s viral caseload creeps higher and as government financial aid has faded.

When the Labor Department issues its September jobs report, economists predict it will show a gain of 850,000, according to a survey by data provider FactSet. That would mark a third straight monthly slowdown, after June’s 4.8 million job gain, July’s 1.7 million and August’s 1.4 million.

If the forecast for September proves accurate, it would mean that the economy has regained only slightly more than half the 22 million jobs that vanished when the pandemic flattened the economy in early spring. Should job gains continue to remain below 1 million a month, it would take until late 2021 or 2022 to recoup them all.

So far, hiring has rebounded quickly compared with previous recessions. The gains have mainly reflected millions of temporarily laid-off Americans who were called back to work when retailers, restaurants, medical offices and other businesses reopened, at least partly, from their pandemic-induced shutdowns.

But slowing job growth has raised the specter of a prolonged downturn that feeds on itself and becomes harder to fully reverse. Many temporary layoffs are becoming permanent as hotels, restaurants, airlines, retailers, entertainment venues and other employers anticipate a longer slump than they initially expected. There is also growing fear of a resurgence of the virus, which would compound the threat.

The longer that laid-off workers fail to find jobs, the more likely it is that they will have to look for new work with new employers or in different occupations. Doing so can require additional training or education and take much longer to achieve than just returning to a previous job. The