This week's rig count was mostly about adjusting some big accounting errors from last week!
The total U.S. land rig count fell by 5 to 409 and the horizontal land rig count fell by 6 to 335.
Last week, the Bakken HRZ gained 8 rigs which seemed like a lot but this week it lost 11 rigs so it seems like it really lost 3 net rigs over 2 weeks. Similarly, last week the Woodford supposedly gained 8 rigs--a lot--but this week it lost 8 for a net change of zero.
With that behind us, it seems like the horizontal rig count really dropped by 11 over the past 2 weeks. Related: Why the Saudis Want a Deal in Doha
Tight oil lost 7, shale gas lost 2 and "other" lost 2. For tight oil plays, the Bakken lost 3, the Eagle Ford, 1, the Permian 2 and Mississippi Lime, 1. For shale gas plays, the Haynesville lost 1, the Marcellus lost 1, the Utica gained 1 and the Barnett lost 1.
I think that I've gotten the accounting right. Baker Hughes made no acknowledgement that they had made any errors.
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The rig count decline continues to follow the WTI price as can be seen in below chart. Related: Oil Slips While All Eyes Are On Doha
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By Art Berman for Oilprice.com
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