EOA Rig Count Report
MAIN TAKEAWAY
Earlier this month, there was a large drop in the natural gas-directed rig count. A similar decline was recorded last week in the oil-directed rig count as we explain below.
Although the decline in the rig count has become a trend, we still believe that some of the drop in Texas is the result of changing locations.
The rig count remains robust in the Gulf of Mexico, despite declining by 1 to 21.
IN DETAIL
The total rig count decreased by 11 from 731 to 720, according to Baker Hughes. The oil-directed rig count declined by 11 WoW. Companies reduced the rig count by 2 in the Permian, and by 3 in the Eagle Ford. They also reduced the rig count by 1 in each of the Ardmore Woodford, DJ, Niobrara, the Gulf of Mexico, and other areas.
As for the gas-directed rig count, it remained flat at 141 with no change from the previous week.
Figure (1) below shows the total number of oil and gas rigs.
Figure (1)
Figure (2) below shows the year-over-year (YoY) trends in the number of the oil-directed rig count in the tight oil plays.
Figure (2)
Figure (3) below shows the trends in the oil-directed rig count in various tight oil plays. It also indicates that it is mostly about the Permian!
Figure (3)
Rigs by Type
The US shale revolution has drastically changed the makeup of rigs, leading to an increase in the number of horizontal rigs as shown in Figure (4) below.
Figure (4)
Figure (5)
