Active Rig Count - Nov 4
Posted: Sat Nov 05, 2016 10:08 am
The North American active rig count up 13 last week.
United States:
> Rigs drilling for oil up 9 to 450, compared to 572 a year ago and 1,609 at peak in October, 2014
> Rigs drilling for gas up 3 to 117, compared to 199 a year ago
Canada:
> Rigs drilling for oil up 3 to 76, compared to 79 a year ago
> Rigs drilling for gas down 2 to 77, compared to 106 a year ago
Getting close to the number of rigs drilling for oil to stabilize production, but not even close to number of rigs drilling for gas to stabilize production. Per EIA, U.S. natural gas production is falling by approximately 0.2 Bcf per day per month. U.S. natural gas production is down 2.5 to 3.0 Bcf per day from one year ago. In addition to the seven regions shown on the EIA's Drilling Productivity report, the Barnett Shale and Fayetteville Shale (two of our largest gas fields) are on steady decline.
U.S. oil production has been flopping around 8.5 million barrels per day since July because of an increase in DUC completions. DUC completions accelerating into year-end because the companies want to get those wells included in proven reserves at year-end. DUC completions will drop off in January unless oil prices go higher.
The U.S. consumes over 17 million barrels of oil per day.
Texas (262) and Oklahoma (76) account for 75% of rigs drilling in U.S. 218 rigs drilling in the Permian Basin (~25 of these are in New Mexico). More than 50% of those in Oklahoma are drilling in SCOOP & STACK.
United States:
> Rigs drilling for oil up 9 to 450, compared to 572 a year ago and 1,609 at peak in October, 2014
> Rigs drilling for gas up 3 to 117, compared to 199 a year ago
Canada:
> Rigs drilling for oil up 3 to 76, compared to 79 a year ago
> Rigs drilling for gas down 2 to 77, compared to 106 a year ago
Getting close to the number of rigs drilling for oil to stabilize production, but not even close to number of rigs drilling for gas to stabilize production. Per EIA, U.S. natural gas production is falling by approximately 0.2 Bcf per day per month. U.S. natural gas production is down 2.5 to 3.0 Bcf per day from one year ago. In addition to the seven regions shown on the EIA's Drilling Productivity report, the Barnett Shale and Fayetteville Shale (two of our largest gas fields) are on steady decline.
U.S. oil production has been flopping around 8.5 million barrels per day since July because of an increase in DUC completions. DUC completions accelerating into year-end because the companies want to get those wells included in proven reserves at year-end. DUC completions will drop off in January unless oil prices go higher.
The U.S. consumes over 17 million barrels of oil per day.
Texas (262) and Oklahoma (76) account for 75% of rigs drilling in U.S. 218 rigs drilling in the Permian Basin (~25 of these are in New Mexico). More than 50% of those in Oklahoma are drilling in SCOOP & STACK.