EOA Rig Count Report

What is going on in the Permian?

MAIN TAKEAWAY

• Something strange is happening in the Permian: Oil-directed rig count decreased by 6 and gas rig count increased by 7! We have not seen such a gas rig count since August 2013.

• Permian’s oil-directed rig count is at its lowest since April 2022.

• We need to wait a couple of weeks to determine what is going on: Is the Permian getting gassier? Or this is the shift due to misclassification?

• At this point rig counts are almost where they were before the Russian invasion of Ukraine.  Should we look at this as a return to normalcy?

IN DETAIL