Snapshot: US Rig Count – sta•ble (stāˈbəl)
Stable: adj. Resistant to change of position or condition; not easily moved or disturbed:
Oil prices fell 4 percent on Friday, paring weekly gains, on a report that Saudi Arabia did not expect an agreement at talks next week among major crude exporters aimed at freezing production.
Energy stocks fell as the price of oil declined steeply. The Dow Jones industrial average lost 131.01 points, or 0.7 percent, to 18,261.45. The Standard & Poor’s 500-stock index lost 12.49 points, or 0.6 percent, to 2,164.69, and the Nasdaq composite index lost 33.78, or 0.6 percent, to 5,305.75.
Rig Count Summary
New rig activity resumed this week, although at a slower pace. It appears there was a reshuffling of some of the rigs in the field, with lower quality vertical rigs replaced by more productive horizontal and directional rigs.
The number of active US oil rigs rose by 2 to 418 this week and the number of gas rigs rose by 3 to 92, bringing the total US Rig Count up to 511. There have been increases in 12 out of the last 13 weeks.
A year ago, 838 rigs were active. Depressed energy prices have sharply curtailed oil and gas exploration.
Several of the major oil-and gas-producing states made either a modest increase or modest decrease. Texas and Oklahoma led the way in increases, each gaining 2 unitsto 246 and 67, respectively. Texas is now up 65 units since May 13 but down 712 since a peak on Aug. 29, 2008.
The Cana Woodford and Mississippian each added a unit to hit respective totals of 33 and 3. The Eagle Ford also was down a unit, settling at 37. Down 1 unit to 201, the Permian declined for just the second time in 19 weeks.
Raymond James & Associates Inc., projected the average overall US rig count for 2017 is expected at 800 units, rising to 1,100 in 2018, even though the firm projects industry cash flows will likely justify higher counts.
The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May at 404.
Oklahoma Summary – 67 Rigs – Up 2 from last week
Review of Oklahoma Rig Count – YTD
This chart shows the first 39 weeks of the year with rig counts on a weekly basis as reported by Baker Hughes (BHI). Todays report of 67 rigs in the state is 25% above the low of 54 made back on June 24th.
Kingfisher and Blaine Counties remain the same from last week while a few other shifted slightly
Top 6 Counties – YTD Summary – Weekly Count
The top 6 counties from this weeks Oklahoma rig count also sit atop the YTD data, accounting for more than 65% of the total rig count in the state for 2016.
All of the data used in this report is sourced from Baker Hughes (BHI)