BH Rigs June 29: Grim

  • A lousy week for rigs
  • Total oil rigs fell, -4 to 858
  • Horizontal oil rigs were down, -2 to 765
  • This implies a new interim peak for the total and horizontal oil rig count
  • The 4 wma for horizontal oil rig adds fell to 1.75 / week
  • Rig count changes follow WTI with a lag of 9 weeks.  Nine weeks ago, WTI stood at $68 / barrel, which does not seem enough to keep the rig count moving up at present
  • Outside the Permian, rig counts tell a grim story of plays losing resilience
  • Q2 GDP -- big drop from Atlanta Fed
    • NY Fed: 2.8% (-0.1% from last week)
    • Atlanta Fed: 3.8% (-0.9 % from last week)

Baker Hughes Rig Count June 29, 2018