• 3 minutes Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 7 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 6 hours $867 billion farm bill passed
  • 3 hours Venezuela continues to sink in misery
  • 13 mins Waste-to-Energy Chugging Along
  • 2 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 17 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 16 hours Has Global Peak Diesel Arrived?
  • 2 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 hour Regular Gas dropped to $2.21 per gallon today
  • 8 hours What will the future hold for nations dependent on high oil prices.
  • 5 mins Zohr Giant Gas Field Increases Production Six-Fold
  • 8 hours Air-to-Fuels Energy and Cost Calculation
  • 1 day How High Can Oil Prices Rise? (Part 2 of my previous thread)
Alt Text

Chevron Bets Big On Supergiant Oil Field

U.S. supermajor Chevron continues to…

Alt Text

Libyan Oil Production Falls 300,000 Bpd In December

Libya’s crude oil production has…

Alt Text

Oil Output Cuts May Be Coming But Don’t Bet on It

Contrary to what many think,…

Arthur Berman

Arthur Berman

Arthur E. Berman is a petroleum geologist with 36 years of oil and gas industry experience. He is an expert on U.S. shale plays and…

More Info

Trending Discussions

Deciphering The Latest Rig Count Data

The main take-away from this week’s rig count is that everything is on track for lower U.S. oil production by mid-year. The weekly changes vary but the overall trend since October is down and that is positive for achieving a better balance between supply and demand.

Please remember the following points and read my previous post “Oil Prices Don’t Change Because of Rig Count” if you haven’t already:

• Rig count is only one indicator of future production trends.
• Week-to-week changes are not critical but trends may become important.
• Horizontal rigs are more important than vertical rigs.
• Bakken, Eagle Ford and Permian basin are the most important plays for tight oil production in the U.S.

This week, the overall rig count was down 75 compared with 43 rigs last week. The horizontal rig count was down 51 compared with 33 rigs last week.

The Eagle Ford Shale play lost 9 horizontal rigs this week, the Permian lost 15 and the Bakken lost 3 rigs.

RigCountChangeTable

Rig Count Change Table. Source: Baker-Hughes, Labyrinth Consulting Services, Inc.

(Click to enlarge)

Related: Oil Price Crash A Blessing In Disguise For US Shale

The Bakken horizontal rig count is down 40% from its maximum in 2014. The Permian basin horizontal rig count is down 33% and the Eagle Ford is down 30%.

RigCountMostChanged

Rig Count Most-Changed Table. Source: Baker Hughes and Labyrinth Consulting Services, Inc.

(Click to enlarge) Related: Congress Facing Huge Pressure To Lift Oil Export Ban

Horizontal rigs for tight oil plays were down 36 rigs this week, and 353 rigs (60%) compared with the maximum in 2014.

RigCountMostChanged2

Rig Count Most-Changed Table. Source: Baker Hughes and Labyrinth Consulting Services, Inc.
(Click to enlarge)

By Art Berman for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Nick Horob on March 12 2015 said:
    Thanks for the stats but it appears your math is wrong on the % decline in rig count.
  • Glen on March 24 2015 said:
    this did not show, increase in number of wells drilled per rig year over? Rigs are drilling more wells per month. Production with multi well pads is a game changer .

Leave a comment




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