Friday, May 04, 2018

Oil Rigs: "Another solid week for rig additions"

by Bill McBride on 5/04/2018 07:39:00 PM

A few comments from Steven Kopits of Princeton Energy Advisors LLC on May 4, 2018:

• Total US oil rigs were up, +9 to 834

• Horizontal oil rigs were up, +9 at 743
• The rig count saw widespread horizontal oil gains this week, including the Permian (+4) and Other US (+4)

• Notwithstanding, since last July’s peak, the Permian has added 75 horizontal oil rigs; all other plays together have gained only 10.

• Vertical oil rigs are at their lowest level since November 2016

• The Brent spread has eased back to just over $5 / barrel, but with the gap closing from below, suggesting that the US consumer is trying to hold on to domestic oil inventories. This pattern suggests continued upward price pressure.
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.