• 1 hour U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 9 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 10 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 3 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 3 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 4 days India Needs Help To Boost Oil Production
  • 4 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 4 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 4 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 4 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 5 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 5 days Oil M&A Deals Set To Rise
  • 5 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 6 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 6 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
Alt Text

The Bearish Backlash In Energy This Fall

While September has been an…

Alt Text

Canada’s Pipeline Industry Takes Another Hit

Canada’s struggling oil industry has…

Alt Text

The “Amazon Effect” Is Coming To Oil Markets

The move toward using software…

Euan Mearns

Euan Mearns

"Euan Mearns is a geologist and geochemist. In recent years he was a principal at The Oil Drum, the worlds leading energy blog, until it…

More Info

Rig Count Data Shows Gulf States Cranking Up Pressure On The U.S.

Rig Count Data Shows Gulf States Cranking Up Pressure On The U.S.

The global rig count statistics published by Baker Hughes provide a crucial industry activity indicator and some of the most up to date industry statistics available. This is a short report updating international statistics to March 2015 and US statistics to 10 April 2015.

 MiddleEastRigCount

Figure 1 The Middle East OPEC gulf states continue to confound expectations by increasing their rig count and drilling, evidently intent on keeping the oil market over-supplied and the oil price suppressed. Oil rig count for these 4 countries increased 6 to 161 for the month of March. Saudi oil production hit a new record of 10.3 Mbpd in March. Oil Minister Ali Al-Naimi wants price stability and order to return to the market but on OPEC’s terms. Related: Could We Finally Have A Meaningful Oil Price Rally?

 WorldRIgCOunt

Figure 2 The international oil rig count peaked at 1080 in July 2014 and has since fallen 104 (10%) to 976 units in March 2015. This is as yet a very muted response to what is a full blown industry crisis. It does take longer for offshore drilling to wind down and it is possible that companies with rigs on contract have simply parked them for the time being. Related: How Much Longer Can OPEC Hold Out?

 EuanUSRIG

Figure 3 This chart shows that the combined US oil plus gas rig count is now approaching the lows seen in the wake of the financial crisis in 2008 / 09. The low point then was 876 rigs in June 2009. The total now is 988. But note how oil and gas drilling is now reversed.

 USRIGSSSSSS

Figure 4 Detail of Figure 3. The pause in the decline of the oil rig count seen in recent weeks was reversed last Friday with a drop of 42 rigs for the week. The most recent data for US oil production for February 2015 shows no sign of the LTO production glut abating. Notably the gas rig count ticked up by 3 units this last week to 225 suggesting perhaps that surplus US gas production capacity has now disappeared. But one needs to ask where this leaves US plans to export LNG? Related: The Real History Of Fracking

There are a large number of forces pulling on the oil industry that more recently include the bombing of Yemen by Saudi Arabia and allies and the imminent lifting of sanctions on Iran. Iran may add a further 1 million barrels per day to the glut.

 IranProduction

Figure 5 Iranian production was never fully curtailed by sanctions and may recover by about 1 million barrels per day with the lifting of sanctions.

Euan Mearns For Euanmearns.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News