Friday, April 13, 2018

Oil Rigs "Horizontal oil rigs come in flat"

by Bill McBride on 4/13/2018 04:02:00 PM

A few comments from Steven Kopits of Princeton Energy Advisors LLC on Apr 13, 2018:

• Total US oil rigs were up, +7 to 815

• Horizontal oil rigs were flat at 717
...
• Not a lot of enthusiasm for adding horizontal oil rigs, high oil prices notwithstanding.

• Last week’s impression remains: Shale production growth is going to underperform expectations.

• Global oil demand growth has been running hot; +2.0 mbpd / year since November (EIA), explaining high oil prices and draws notwithstanding 1.6 mbpd US crude + ngl production growth over the last year.

• The Brent spread is above $5 / barrel – 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.