Active Rig Count - June 17

[dan_s]

Active rig count in North America increased by 14 last week.

United States:
> Rigs drilling for oil increased by 9 to 337, compares to 1,609 in October, 2014 and 631 a year ago.
> Rigs drilling for gas increased by 1 to 86, compared to 223 a year ago.

It will take at least double the active rig count before U.S. oil and gas production can stabilize. As I pointed out in the newsletter, existing wells decline by 25% to 30% annually in the U.S. because over half of our production now comes from horizontal wells completed in tight formations that decline rapidly after they go on-line. We are on a treadmill that will never stop.

Canada
> Rigs drilling for oil declined by 1 to 28, compared to 74 a year ago
> Rigs drilling for gas increased by 4 to 40, compared to 62 a year ago

[dan_s]

Headlines like this kill me: https://www.thestreet.com/story/1361194 ... _ven=YAHOO

"Jumps" is a bit of an exaggeration when you consider the active rig count was over 2,000 two years ago.

Yes, we will see a "gradual" increase in the rig count, but we are nowhere close to the number of active rigs needed to stop U.S. oil and gas production from falling much further.

[setliff]

hell, look where it came from. if cramer didn't write it, one of his stooges did.

[dan_s]

I know, some of the stuff Cramer says is unbelievably dumb. It is amazing how much the guy knows, but like most on Wall Street, their knowledge of the oil & gas industry is "limited".

[setliff]

he's got a photographic memory------

btw, out of the ordinary for you to be posting this late on a friday--