North Dakota #2 in Number of Rigs

This story says North Dakota has 162 active rigs, putting it fourth among the states in number of rigs, behind Texas, Oklahoma, and Louisiana.

Outpacing Louisiana for the number two spot, Oklahoma has the second-largest number of drilling rigs in the state with 173 active rigs. Most rigs are drilling in the Anadarko Basin, but some are active in the Arkoma Basin as well. Oklahoma has historically been a leader in natural gas production, but more rigs are drilling for oil in its liquids-rich Woodford Shale.

With 165 active drilling rigs in the state, Louisiana is supported by both onshore and offshore drilling. Currently, there are 131 rigs drilling onshore and 34 offshore rigs in Louisiana. Onshore, drilling continues in the gas-rich Haynesville Shale, but rigs are now starting to spin their bits to develop the Eagle Ford Shale in Louisiana. Nonetheless, if only onshore rigs were counted, there are more drilling rigs in North Dakota than in Louisiana.

Spurred by increased activity in the liquids-rich Bakken Shale, North Dakota has added 57 rigs this year to boast 162 active drilling rigs in the state. With 96 percent of the wells being drilled horizontally and 99 percent of the wells being drilled for oil, North Dakota is supporting a burgeoning oil production in the Bakken formation, and activity around the state is flourishing to develop infrastructure to support this increased production.

In fact, North Dakota has had as many as 179 active rigs. Of course, these data points are all snapshots and change on a daily basis. So, we may have to wait several months to see how this plays out. Based on what little I know, no one will catch up with Texas. However, my hunch is that North Dakota will overtake Oklahoma on a consistent basis by 2014.