A brutal week for rigs

  • A brutal week for rig counts
  • Total oil rigs fell, -5 to 858
  • Horizontal oil rig counts came in -7 to 762
  • The 4 wma change for horizontal oil rigs fell to -0.7 / week
  • ‘Other US’ was hard hit, down 7; not much movement otherwise
  • A year ago, operators were adding rigs at $50 WTI; now they are withdrawing rigs at $70 WTI. 
  • All this begs the underlying economics of shale production after 500 horizontal oil rigs have been added in this cycle. 
  • Q2 GDP
    • NY Fed: 2.7% (-0.1% from last week)
    • Atlanta Fed: 4.5% (+0.7% from last week)

Baker Hughes Rig Count - July 20, 2018