BH Rigs Aug. 17 - A breather after last week's big gains

  • Oil rigs took a breather, consolidating last week’s gains
  • Total rigs were flat at 869
  • Horizontal oil rigs declined, -2 to 768
  • The 4 wma change for horizontal oil rigs came in at +1.5 / week on the back of last week’s strong numbers
  • Horizontal oil rig counts stand at the level of ten weeks ago in both the Permian and other plays
  • Frac spreads declined by 6 to 444, compared to a 2 horizontal oil rig decline.  Unlike rigs last week, however, the frac spread count has been declining steadily for two months
  • At 58%, the frac spread ratio is the lowest since January 2017, suggesting that we may see rig counts start to roll off once again
  • This month’s DPR shows US shale oil production was up 150 kbpd in July to 7.2 mbpd. 
  • Year on year growth in the Permian came in a 0.92 mbpd – almost one million barrels per day of annual growth from just one play!
  • Total year on year production growth reached 1.6 mbpd
  • On a more recent basis, 3 mma production growth, annualized, is coming in at 1.3 mbpd
  • Q3 GDP
    • NY Fed: 2.4% (-0.2%)
    • Atlanta Fed: 4.3% (+0.0%)

Baker Hughes Week of Aug. 17, 2018