BH Rig Count week of May 11th: Additions rolling along

  • Total US oil rigs were up, +10 to 844
  • Horizontal oil rigs, however, were only up +2 at 745
  • The 4 wma for horizontal oil rig additions came in at a solid +7.0 / week
  • Oil rig additions came in the neglected ‘directional’ category, but only represented the recovery of rigs taken off line last week
  • With the Brent spread over $6 / barrel, the end of the Iran deal, and a general sense of bullishness around oil markets, expect rig count additions to accelerate
  • We have called for equities to move up, and indeed the Williston Fund, which we use as a benchmark, is up 12% in the last month.
  • Equities still look to have plenty of running room ahead of them.
Rig Add May 11.png
  • Frac spreads were up 8 to 470 last week, compared to +2 horizontal rigs for the same period
  • The frac ratio stands at 63.1%, which is on the high end for this metric, suggesting aggressive fracking activities in the field
Frac May 11.png