Active Rig Count - June 24
Posted: Fri Jun 24, 2016 2:25 pm
Obviously, this has nothing to do with Brexit.
The North American active rig count was up just 4 rigs for the week ending June 17.
U.S.
> Rigs drilling for oil was down 7 to 330, compares to 1,609 in October, 2014 and 628 a year ago. We need AT LEAST double the current rig count to stabilize U.S. oil production.
> Rigs drilling for gas was up 4 to 90, compares to 228 a year ago. We need AT LEAST 300 rigs drilling for gas to stabilize U.S. gas production.
Canada
> Rigs drilling for oil was up 8 to 36, compared to 76 a year ago
> Rigs drilling for gas was down 1 to 39, compared to 59 a year ago
Rigs drilling in Texas +3 to 194
There was an article in the Houston Chronicle today (written by one of the idiots there) who said upstream companies would run out and complete 800 DUC wells now that oil was near $50 and that these wells would stabilize U.S. production. That article is total hogwash. The onshore decline rate in the U.S. is now so high (27% per year) on existing wells that it will take a lot more than that. Back in the first half of 2014 we completed over 12,000 new wells. This year, we may complete 5,000 new wells and the rate of decline in the U.S. is accelerating.
The North American active rig count was up just 4 rigs for the week ending June 17.
U.S.
> Rigs drilling for oil was down 7 to 330, compares to 1,609 in October, 2014 and 628 a year ago. We need AT LEAST double the current rig count to stabilize U.S. oil production.
> Rigs drilling for gas was up 4 to 90, compares to 228 a year ago. We need AT LEAST 300 rigs drilling for gas to stabilize U.S. gas production.
Canada
> Rigs drilling for oil was up 8 to 36, compared to 76 a year ago
> Rigs drilling for gas was down 1 to 39, compared to 59 a year ago
Rigs drilling in Texas +3 to 194
There was an article in the Houston Chronicle today (written by one of the idiots there) who said upstream companies would run out and complete 800 DUC wells now that oil was near $50 and that these wells would stabilize U.S. production. That article is total hogwash. The onshore decline rate in the U.S. is now so high (27% per year) on existing wells that it will take a lot more than that. Back in the first half of 2014 we completed over 12,000 new wells. This year, we may complete 5,000 new wells and the rate of decline in the U.S. is accelerating.