The Baker Hughes weekly rig count came out on Friday, and we are seeing the decrease in drilling activity continuing to accelerate. 74 rigs dropped, or 4.4% of all US active land rigs. This is a slight acceleration in the rate of decline since last week, and at the current pace, we could drop 25% of active rigs in the next month. 44 of the 74 were in Texas, including 15 in the Permian (487 rigs) and 12 in Eagleford (185 rigs). The major oil basins are all about 12-17% off their early October peaks. The Granite Wash (43 rigs) is 33% off the early october number, and has been the biggest decliner. The Utica (49 rigs) and Barnett (25 rigs) are the only significant plays that haven't seen a decline yet.
I'm going to keep watching this since for the next weeks. I didn't used to comment on it because there was too little change from one week to the next to be particularly interesting.
I'm going to keep watching this since for the next weeks. I didn't used to comment on it because there was too little change from one week to the next to be particularly interesting.
No comments:
Post a Comment