Exploration & Production - Rig Counts
Oil exports are needed, but improbable, as U.S. oil supply builds. Near the end of March, storage at Cushing, Okla., had grown to 58.9 million barrels, about 80% of capacity.
U.S. crude oil in storage grew by 8.4 million barrels—twice as much as commodity analysts expected—to 1.125 billion barrels for the week ending Feb. 20, according to the EIA’s weekly report Wednesday. Of that, 434 million was in non-SPR storage, up from 363 million a year ago.
Halcón’s budget will fall 60% from 2014 levels while Sanchez reduces rigs.
The number of rigs in the Permian and the Bakken was analyzed.
Bakken share gains should reverse as drilling stagnates, activity in other basins expands.
As operators drill wells more quickly they are meeting program goals with fewer rigs.
Sell-side downgrades are coming to the land drilling sector with the rapidity of an auctioneer’s chant.
During the month, Basic's fluid service truck count remained unchanged at 915. Fluid service truck hours for the month were 184,900, compared to 195,900 and 171,700 in March 2012 and April 2011, respectively.
In looking at the current oil versus gas rig count, this is the first time since the early 1990s that the oil rig count in the U.S. has exceeded the gas rig count.
The U.S. rig count for January 2012 was 2,003, unchanged from the 2,003 counted in December 2011 and up 292 from the 1,711 counted in January 2011.
It’s going to take an extended run of puny natural gas prices to negatively impact activity levels.
Industry metrics are reflecting changed budget priorities as 2012 gets under way. Many budgets are now liquids oriented and have a portion targeting expanded activity in the Midcontinent.