Friday, July 07, 2017

Oil Rigs: "The party's not over yet"

by Bill McBride on 7/07/2017 05:18:00 PM

A few comments from Steven Kopits of Princeton Energy Advisors LLC on July 7, 2017:

• Total US oil rigs were up 7 to 763

• Horizontal oil rigs were up an impressive 9 to 657

• Since the beginning of June, much of the growth has come from less favored basins – the Bakken and Cana Woodford – and from ‘Other US’

• Similarly, Canada has gained relative to expectations

• These developments suggest operators outside the Permian and Eagle Ford are learning how to prosper with lower oil prices.

• Decidedly bearish – and the market couldn’t care less
Oil Rig CountClick on graph for larger image.

CR note: This graph shows the US horizontal rig count by basin.

Graph and comments Courtesy of Steven Kopits of Princeton Energy Advisors LLC.