Friday, April 06, 2018

Oil Rigs "Are the Permian's Go-Go Days Ending?"

by Bill McBride on 4/06/2018 04:15:00 PM

A few comments from Steven Kopits of Princeton Energy Advisors LLC on Apr 6, 2018:

• Total US oil rigs were up sharply this week, +11 to 808.

• Horizontal oil rigs were up, +17 to 717.
• The Permian horizontal oil rig count is essentially unchanged in two months. Are we reaching some limit there? Does Conoco’s sale of non-core Permian assets suggest the go-go days are ending?

• All the other basins, major and minor, are essentially back at the prior peak of July 2017

• The overall impression is of risks gathering to the downside

• The Brent spread is near $5 / barrel again – quite bullish
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.