Rigs and Spreads Nov. 9: Big gains, but not that impressive

  • Oil rigs in total were up sharply, +12 to 886

  • Horizontal oil rigs gained more modestly, +3 at 778

  • Lots of movement this week

  • Permian saw +3 horizontal oil rigs, but the total was essentially unchanged in nearly three months

  • Cana Woodford was crushed, -9, bringing the count there to the lowest level since March

  • ‘Other US’ has not only held earlier gains, but added an additional 9 rigs this week, reaching its highest count for the cycle.  Has someone learned new tricks in the minor plays?

  • Vertical rigs saw a big jump, +6 to 64, the highest level in over a year.  Vertical rigs are sometimes used to drill the top portion of horizontal wells, and thus may represent a precursor to subsequent horizontal oil rig activity

  • The model forecasts just this, notable horizontal oil rig gains in the next three weeks or so (followed by a crash heading into 2019)

  • Frac spreads rose by 5 to 474, about 9 below their normalized level, suggesting spread counts may continue to rise

Rigs and Spreads Nov. 9