A quiet week for oil rigs

  • A quiet week for rigs counts.
  • Total rig counts rose 1 to 863
  • Horizontal oil rigs added 2 to 765
  • After a heady gain last week, the Permian gave back 4 rigs this week
  • The Eagle Ford saw some life, with 3 rigs added
  • The 4 wma for horizontal oil rig adds advanced to 4.75 / week, but is likely to fall back substantially next week
  • The appetite to add rigs seems to be waning.
  • We have added a new section on shale oil production from the EIA’s monthly Drilling Productivity Report (DPR), to compare rig counts to production gains.
  • As with the rig counts, the DPR indicates that plays outside the Permian have added minimal volumes since last November.
  • Again, we see a reasonably bullish report and again oil sold off, ending the day a bit above $64 / barrel WTI. 
  • Q2 GDP
    • NY Fed: 3.0% (-0.1% from last week)
    • Atlanta Fed: 4.8% (+0.2 % from last week)
  • BH Rig Count June 15, 2018