Monday, January 07, 2019

Oil Rigs Declined, More Expected

by Bill McBride on 1/07/2019 04:43:00 PM

A few comments from Steven Kopits of Princeton Energy Advisors LLC on January 4, 2019:

• Oil rigs fell, -8 to 877

• Notwithstanding, horizontal oil rigs held their ground, +0 to 786

• The Permian, interestingly enough, added one hz oil rig to a new high of 442

• Breakeven to add rigs fell to around $60 WTI compared to $47 WTI on the screen as of the writing of this report. To appearances, the operators stopped adding rigs on the way up at $65, and perhaps may not substantially cut rigs until oil fell below $65, which would imply cuts coming through next week.

• The model continues to predict big rig roll-offs in the next several weeks.
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.