US Oil & Gas Monitor: 2015 archive

US Oil & Gas Monitor: 2015 archive

  • Onshore Rig Decline Slows ... Storage Business Booming

    Onshore Rig Decline Slows ... Storage Business Booming

    31st December 2015

    The onshore rig count declined this week, down just 3, with Permian adding 5 oil rigs last week.  The average decline over the past 18 weeks stands at 8 rigs per week, an indication that the rig decline rate is diminishing and this may well slow LTO production decline in 2016.

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  • WTI Trades Above Brent ... Oil Rigs Continue to Decline

    WTI Trades Above Brent ... Oil Rigs Continue to Decline

    23rd December 2015

    The onshore rig count declined further this week, down 8 and looks to be facing continued pressure into 2016 as operators are forced to reduce capital spending.

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  • Outlook for U.S. LTO ProDUCtion In 2016

    Outlook for U.S. LTO ProDUCtion In 2016

    18th December 2015

    2015 has certainly been a tumultuous year for the oil and gas industry.  The year started with a crash, and is ending even deeper in the hole.  What has that meant for U.S. light tight oil (LTO), and what is the outlook for production?

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  • Oil Price a Dagger through the Heart? … Down 10% and Rigs Down 21

    Oil Price a Dagger through the Heart? … Down 10% and Rigs Down 21

    11th December 2015

    Last week, GCA’s unconventional basin model indicated that rig count would have to fall a further 60% for end 2016 LTO production to fall to 3 million barrels per day.

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  • OPEC Signs Off On A Tough 2016 ... Crude Imports Surge

    OPEC Signs Off On A Tough 2016 ... Crude Imports Surge

    4th December 2015

    The U.S. onshore rig count declined further this week, down 2 and looks to face continued pressure into 2016.  The OPEC meeting both confirmed no near-term move to cut, and that output is now officially 1.5 million barrels per day higher (now 31.5 million barrels per day), which is what everyone thought it was anyway.

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  • Oil Rigs Decline ... Cushing Adds Barrels

    Oil Rigs Decline ... Cushing Adds Barrels

    27th November 2015

    The U.S. onshore rig count continued lower, down 13 this week.  Eagle Ford and Bakken oil rigs are currently holding just above 60 with the Permian at 214, shedding 12 oil rigs in November.  

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  • All Steady … In Decline

    All Steady … In Decline

    20th November 2015

    The U.S. onshore rig count continued its march lower, down 6 this week, while WTI fell below US$40 for the first time since August on Wednesday before recovering back above US$41.  The economics of LTO at this pricing point, coupled with financing constraints, suggests that a continued slow but steady decline in activity is likely unless price signals change – something most industry players are not planning for in the short term.

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  • As Crude Prices Decline … U.S. Imports Increase

    As Crude Prices Decline … U.S. Imports Increase

    13th November 2015

    The U.S. onshore rig count continued lower, down 5 this week.  With WTI hovering just above US$40 per barrel and the slow pace of weekly rig releases, onshore operators are striving to survive the lower for longer oil market.  

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  • Weak Demand ... Crude Inventories Increase

    Weak Demand ... Crude Inventories Increase

    6th November 2015

    The U.S. onshore rig count continued lower this week, down 2, providing little to no impact on the U.S. production decline rate.  

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  • U.S. Oil Imports Rise … Rigs Decline 9 Weeks!

    U.S. Oil Imports Rise … Rigs Decline 9 Weeks!

    30th October 2015

    The U.S. onshore rig count continued lower this week, down 10, while horizontal rigs declined by 30, leaving about 40% working from a year ago. 

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  • U.S. Onshore Drilling Productivity Slows ... Onshore Rig Release Slows Too!

    U.S. Onshore Drilling Productivity Slows ... Onshore Rig Release Slows Too!

    23rd October 2015

    The U.S. onshore rig count continued lower this week, releasing 2 more rigs for a nine-week decline of 101.  Is this the bottom of the latest rig count adjustment?  With oil prices not moving significantly one way or the other, this would seem to be at least a temporary equilibrium. 

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  • U.S. Refinery Input Declines … Crude Oversupply Remains!

    U.S. Refinery Input Declines … Crude Oversupply Remains!

    16th October 2015

    The U.S. onshore rig count continued lower this week, releasing 9 more rigs for an eight-week decline of 99.  With the current decline trend, operators could release an additional 100+ onshore rigs before the end of the year.

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  • Oil Rig Decline Continues ... Beware of Oil’s “Dead Cat Bounce”!

    Oil Rig Decline Continues ... Beware of Oil’s “Dead Cat Bounce”!

    9th October 2015

    The U.S. onshore rig count continued its deep dive this week, releasing 16 more rigs for a seven-week decline of 90.

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  • Rig Count Doesn’t So Much Decline … As Plummet!

    Rig Count Doesn’t So Much Decline … As Plummet!

    2nd October 2015

    The U.S. onshore rig count took a dive this week, releasing 26 more rigs for a six-week decline of 74.  The latest EIA data release shows LTO production slipping a further 56,000 barrels per day in July, taking the four month decline to over 300,000 barrels of oil per day.  The news hitting the market also caused the oil price to jump by more than a dollar.

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  • Steady As She Goes … Down

    Steady As She Goes … Down

    25th September 2015

    The U.S. onshore rig count continued its slow but steady downward slide, releasing 6 more rigs this week for a five-week total of 48.  The total number of active rigs now stands at 805, down 1,071 (57%) from a November 2014 high of 1,876.  Across the three major unconventional basins, the oil rig total declined to 388 (down 7 last week), with Eagle Ford and Permian down 3 each, and Williston down 1.  Horizontal rigs decreased by 11, bring the total number to 629.

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  • Not All Rigs Released are Equal … The Ones Today Impact Future Production More!

    Not All Rigs Released are Equal … The Ones Today Impact Future Production More!

    18th September 2015

    The downward rebasing of the onshore rig fleet continued this week, taking the four-week declining streak to 42 (6 more) and leaving the total number of active rigs at 811, a new low (15 below the mid-2015 level and 18 below that recorded in May 2009).  Overall, it is now down 1,065 (57%) from a November 2014 high of 1,876.

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  • Death by 1,059 Cuts … U.S. Oil Production Really Is Declining!

    Death by 1,059 Cuts … U.S. Oil Production Really Is Declining!

    11th September 2015

    The downward rebasing of the onshore rig fleet continued this week, taking the two-week decline to 30 (14 more) and leaving the total number of active rigs at 817, a new low (9 below the mid-July 2015 level and 12 below that recorded in May 2009).  Overall, it is now down 1,059 (56%) from a November 2014 high of 1,876.

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  • Prediction is Very Difficult, Particularly When it Involves the Future*

    Prediction is Very Difficult, Particularly When it Involves the Future*

    4th September 2015

    While oil prices continued their gyration this week (Brent trading in the range US$47 to US$54 per barrel; WTI in the range US$42 to US$49, the onshore rig count resumed its decline, decreasing by 16 and now standing at 831.  That is down 1,045 (56%) from a November 2014 high of 1,876, but still up 2 from its June 2015 low.

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  • Another Week this Year Not for the Faint of Heart …

    Another Week this Year Not for the Faint of Heart …

    28th August 2015

    While oil prices gyrated this week due to China growth concerns and U.S. gasoline consumption, the onshore rig count declined for the first time in 4 weeks, decreasing by 6 and now standing at 848.  That is down 1,016 (54%) from a November 2014 high of 1,876, but up 18 (3%) from its June 2015 low.

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  • Déjà vu … All Over Again

    Déjà vu … All Over Again

    21st August 2015

    While oil price headed down further this week, apparently spooked by U.S. storage and refining numbers, the onshore rig count continued its (4-week) slow rise, increasing by 5 and now standing at 854.  That is down 1,022 (54%) from a November 2014 high of 1,876, but up 24 (3%) from its June 2015 low.

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  • OPEC Crude Production Hits 31.7 million bopd ... Glut to Continue into 2016?

    OPEC Crude Production Hits 31.7 million bopd ... Glut to Continue into 2016?

    14th August 2015

    While oil price drifted down further this week, the onshore rig count increased by another 3 and now stands at 849.  That is down 1,027 (55%) from a November 2014 high of 1,876, but up 19 from the June 2015 low of 830 despite oil having lost 25% of its value in the interim.

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  • U.S. Demand Responds while Production is Resilient to Decline … Are Current Prices Sustainable?

    U.S. Demand Responds while Production is Resilient to Decline … Are Current Prices Sustainable?

    7th August 2015

    After last week’s modest decline of onshore rigs, the number of active onshore oil and gas rigs increased by 6 this week.  The onshore rig count now stands at 846, down 1,030 (55%) from a November 2014 high of 1,876, but up 16 from the June 2015 low of 830.  With worries about China demand and Iran perhaps getting back in the market quicker than expected, prices resumed their fall again this week, hitting US$44.20 per barrel for WTI, and US$48.78 for Brent, down 25% (ironically) from the same point in June when the rig count hit its low for the year.

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  • Rigs and Price Flat. Second Quarter Results Begin … Reflecting Fundamentals of $50-$60 Oil

    Rigs and Price Flat. Second Quarter Results Begin … Reflecting Fundamentals of $50-$60 Oil

    31st July 2015

    After last week’s big jump, the number of active onshore oil and gas rigs dropped slightly, down by 5.  However, the headline masks a continued (small) increase in the oil well count, but a larger decrease in gas wells.  The onshore rig count now stands at 840, down 1,036 (55%) from a November 2014 high of 1,876.  Prices stayed more or less flat during the week, hovering a little below US$50 per barrel for WTI, and a little above for Brent.  Of more interest this week are Second Quarter results that are starting to emerge and reflect price fundamentals.

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  • Rigs Up but Crude Price Down … Have E&P Operators Jumped the Gun?

    Rigs Up but Crude Price Down … Have E&P Operators Jumped the Gun?

    24th July 2015

    In a week where crude oil prices fell by some US$2.50 per barrel, the total number of active oil and gas rigs showed a significant increase of 19, with those targeting oil increasing by 21.  The onshore rig count now stands at 845, down 1,031 (55%) from a November 2014 high of 1,876. While it is always hard to make a call on the basis of a single week’s figures, even though this is the largest week-on-week rig count increase since August 2011, it does pose the question as to whether producers may be reacting to unconventional production starting to decline by increased drilling in an attempt to maintain cash flow.  With a number of factors suggesting that any earlier hoped-for firming of the oil price in the second half of 2015 is now less likely, it looks like any activity increase may have jumped the gun and only result in continuing the downward pressure on prices.

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  • Iran Deal Agreed ... Lower Crude Price Needed to Accommodate Iran Barrels in 2016?

    Iran Deal Agreed ... Lower Crude Price Needed to Accommodate Iran Barrels in 2016?

    17th July 2015

    The total number of active oil and gas drill rigs showed a small decline of 6 this week with rigs targeting oil decreasing by 7.  The decrease in rig count now stands at 1,048 (56%) from a November 2014 high of 1,876 to 828 on 17 July 2015.

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  • U.S. Production and Rig Count Stable; Oil Price Retreats ... All Calls Possible in the Short Term

    U.S. Production and Rig Count Stable; Oil Price Retreats ... All Calls Possible in the Short Term

    10th July 2015

    While the rig count for the week more or less flatlined, the bigger story of the week has been the oil price.  Closing last week at $56.54, WTI dropped to $50.68 on Monday, catching the market by surprise.  A number of theories have sought to explain this, though none appear definitive. They include, alone or in combination, Greece, Iran, China, an unexpected expansion of U.S. crude stockpiles, higher output numbers by Saudi and Iraq, a strengthening U.S. Dollar and an increase in U.S. rigs drilling for crude oil.  WTI recovered somewhat over the course of the week, trading at $52.18 mid-Friday, but still down $4.36 (-8%) on the week.  (WTI closed the day at $52.74, down $3.80 (-7%).  Brent also fell over the week, although slightly less, from $60.51 to $58.22 mid-Friday.)

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  • U.S. Gas Rigs Down 9, Oil Rigs Up 12; Unconventional Operators Added 6 Rigs

    U.S. Gas Rigs Down 9, Oil Rigs Up 12; Unconventional Operators Added 6 Rigs

    3rd July 2015

    U.S. rigs drilling for oil increased for the first time this year, after 29 consecutive weeks of declines. The total number of actively drilling oil rigs jumped by 12 this week following several weeks of small decreases, which indicates that the streak of rigs being taken offline may be nearing its end.

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  • U.S. Onshore Rig Count Up 1; Unconventional Operators Drop Additional Rigs

    U.S. Onshore Rig Count Up 1; Unconventional Operators Drop Additional Rigs

    26th June 2015

    The Baker Hughes US onshore rig count gained 1 this week, bringing the total number of active rigs to 831, compared to no change last week.  However, across the three major unconventional oil basins, 6 rigs were dropped, with the Eagle Ford down 1, Permian down 2, and Williston down 3 week-on-week.  These rig count drops were offset by slight gains in the Haynesville, Marcellus, and Cana Woodford basins, and conventional-focused rigs added in Louisiana.  It also should be noted that rig activity over the past week included the dropping of 8 horizontal rigs, but gains of 7 vertical and 2 directional rigs.  The rig count has now declined by 1,048 (56%) from a November 2014 high of 1,876 to 831 on 26 June 2015.

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  • U.S. Onshore Rig Count Remains Flat; Crude Storage Drawdown Continues Trend for Seventh Week

    U.S. Onshore Rig Count Remains Flat; Crude Storage Drawdown Continues Trend for Seventh Week

    19th June 2015

    The Baker Hughes U.S. onshore rig count stayed at 830 this week, compared to a drop of 11 rigs last week.  The rig count has now declined by 1,048 (56%) from a November 2014 high of 1,876 to 830 on 19 June 2015.  The three major oil producing basins are up overall with the Eagle Ford flat, Permian Basin up 1, and Williston Basin up 2 week on week.  While the past two months has seen an average reduction of about 5 rigs per week, the rate of decline has clearly slowed and, with oil prices staying at their current level, the future issue now is whether the rig count “bounces along the bottom”, or starts to rise.

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  • U.S. Onshore Rig Count Drops 11; Crude Storage Drawdown Largest in 12 Months

    U.S. Onshore Rig Count Drops 11; Crude Storage Drawdown Largest in 12 Months

    12th June 2015

    The Baker Hughes U.S. onshore rig count continued the renewed decline this week, dropping 11 rigs compared to a drop of 5 rigs last week.  The rig count has now declined by 1,046 (56%) from a November 2014 high of 1,876, to 830 on 12 June 2015.  However, it was the lesser basins that took the hit, with the three major oil producing basins unchanged overall with the Eagle Ford up 1, Permian Basin down 1, and Williston Basin flat week on week. 

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  • U.S. Onshore Rig Count Drops 5; Eagle Ford Lays Down 7 Rigs

    U.S. Onshore Rig Count Drops 5; Eagle Ford Lays Down 7 Rigs

    5th June 2015

    The Baker Hughes U.S. onshore rig count continued to decline this week, dropping 5 rigs compared to a drop of 10 rigs last week.  The rig count has now declined by 1,035 (55%) from a November 2014 high of 1,876, to 841 on 5 June 2015.  The major oil producing basins saw varying rig gains and losses, with the Eagle Ford dropping 7 rigs, the Williston basin dropping 1 rig, and the Permian basin adding 1 rig.  Intraweek crude price volatility continued for the fourth week in a row with WTI dropping to US$ 57.97 vs. US$ 59.48 last week. 

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  • U.S. Onshore Rig Count Drops 10, Unconventional Gas Takes a Hit

    U.S. Onshore Rig Count Drops 10, Unconventional Gas Takes a Hit

    29th May 2015

    The Baker Hughes U.S. onshore rig count returned to a decline this week, dropping 10 rigs compared to a gain of 2 rigs last week.  The rig count has now declined by 1,030 (55%) from a November 2014 high of 1,876, to 846 on 29 May 2015.  However, the three major unconventional oil-rich basins saw little change in rig count with the Eagle Ford gaining 3 rigs this week, and the Permian and Williston basin both dropping 1 rig each.  Intraweek crude price volatility continued for the third week in a row with WTI dipping and rising several percentage points to remain relatively unchanged week-on-week closing at US$ 59.48 vs. US$ 59.71 last week. 

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  • U.S. Onshore Rig Count Increases For First Time Since November

    U.S. Onshore Rig Count Increases For First Time Since November

    22nd May 2015

    The Baker Hughes U.S. onshore rig count has increased for the first time since November, adding 2 rigs compared to drops of 6 and 11 for the prior two weeks.  The U.S. onshore rig count has now declined by 1,024 (55%) from a November 2014 high of 1,876, to 856 on 22 May 2015.  Rigs active in the Gulf of Mexico decreased by 5 week-on-week to a total of 28 (17 oil focused and 11 gas focused).  U.S. crude prices remained relatively stable week-on-week at closing out the week at approximately US$ 59.70/bbl.      

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  • U.S. Onshore Drops 6 Rigs; WTI Stable Week-on-Week

    U.S. Onshore Drops 6 Rigs; WTI Stable Week-on-Week

    15th May 2015

    The Baker Hughes U.S. onshore rig count decline continued this week, dropping 6 rigs compared to drops of 11 and 27 for the prior two weeks.  The rig count has now declined by 1022 (55%) from a November 2014 high of 1,876, to 854 on 15 May 2015.  Rigs active in the Gulf of Mexico remained stable week-on-week at a total of 33 (21 oil focused and 12 gas focused).  U.S. crude remained stable week-on-week at approximately US$ 59.30/bbl.  The recent crude price rally appears to have come to a halt as rig count decline pace has slowed over the past several weeks and IEA forecasts released this week on demand growth have disappointed.     

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  • U.S. Onshore Rig Count Drops 11; OPEC Barrels or U.S. Storage?

    U.S. Onshore Rig Count Drops 11; OPEC Barrels or U.S. Storage?

    8th May 2015

    The Baker Hughes U.S. onshore rig count decline continued this week, dropping 11 rigs compared to drops of 27 and 23 for the prior two weeks.  The rig count has now declined by 1016 (54%) from a November 2014 high of 1,876, to 860 on 8 May 2015.  Rigs active in the Gulf of Mexico remained constant week-on-week at a total of 33 (22 oil focused and 11 gas focused).  U.S. crude continued its upward price trend with WTI closing at US$ 59.23 for the week vs. US$ 58.75 last week.

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  • U.S. Onshore Rig Count Drops 27; Crude Prices Hit 2015 High

    U.S. Onshore Rig Count Drops 27; Crude Prices Hit 2015 High

    1st May 2015

    The Baker Hughes U.S. onshore rig count decline continued this week, dropping 27 rigs compared to drops of 23 and 34 for the prior two weeks.  The rig count has now declined by 1005 (54%) from a November 2014 high of 1,876, to 871 on 1 May 2015.  Rigs active in the Gulf of Mexico remained constant week-on-week at a total of 34 (26 oil focused and 8 gas focused).  U.S. crude posted significant price gains this week, with WTI closing at US$ 58.75  for the week vs. US$ 57.30 last week.  Crude prices are now at their 2015 highs. 

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  • U.S. Onshore Drops 23 Rigs, GOM Up 1; Storage Builds at Gulf Coast

    U.S. Onshore Drops 23 Rigs, GOM Up 1; Storage Builds at Gulf Coast

    24th April 2015

    The Baker Hughes U.S. onshore rig count decline continued this week, dropping 23 rigs compared to drops of 34 and 42 for the prior two weeks.  The rig count has now declined by 978 (52%) from a November 2014 high of 1,876, to 898 on 24 April 2015.  Rigs active in the Gulf of Mexico gained 1 week-on-week bringing the total to 34 (26 oil focused and 8 gas focused).  

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  • U.S. Onshore Drops 34 Rigs, GOM Adds 1; Crude Prices Rally

    U.S. Onshore Drops 34 Rigs, GOM Adds 1; Crude Prices Rally

    17th April 2015

    The Baker Hughes U.S. onshore rig count decline continued this week, dropping 34 rigs compared to drops of 42 and 17 for the prior two weeks.  The rig count has now declined by 955 (51%) from a November 2014 high of 1,876, to 921 on 17 April 2015.  Rigs active in the Gulf of Mexico gained 1 week-on-week bringing the total to 32 (24 oil focused and 8 gas focused).  U.S. crude posted significant price gains this week, with WTI closing at US$ 56.12 for the week vs. US$ 51.26 last week (8.7% increase).  WTI now sits at its highest price point of 2015. 

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  • U.S. Onshore Drops 42 Rigs, GOM Up 2; Storage Builds at Gulf Coast

    U.S. Onshore Drops 42 Rigs, GOM Up 2; Storage Builds at Gulf Coast

    10th April 2015

    The Baker Hughes U.S. onshore rig count decline more than doubled this week, dropping 42 rigs compared to drops of 17 and 18 for the prior two weeks, with the majority of those rigs being laid down in Texas.  The rig count has now declined by 921 (49%) from a November 2014 high of 1,876, to 955 on 10 April 2015.  Rigs active in the Gulf of Mexico gained 2 week-on-week bringing the total to 31 (23 oil focused and 8 gas focused).  

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  • Rig Count Decline Pace Continues to Slow; U.S. Production Decline Largest in Three Months

    Rig Count Decline Pace Continues to Slow; U.S. Production Decline Largest in Three Months

    2nd April 2015

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 17 rigs compared to drops of 18 and 45 for the prior two weeks.  This week’s drop of 17 rigs is the smallest week-on-week drop of 2015.  The rig count has now declined by 879 (47%) from a November 2014 high of 1,876 to 997 on 02 April 2015.  This is the first time since October 2009 that U.S. onshore rig count falls below 1,000.  Rigs active in the Gulf of Mexico dropped 4, out of which 2 are oil focused.  Currently there are 22 oil rigs and 7 gas rigs active in the Gulf of Mexico.

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  • Rig Count Decline Pace Slows for Third Consecutive Week; Storage Additions Continue

    Rig Count Decline Pace Slows for Third Consecutive Week; Storage Additions Continue

    27th March 2015

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 18 rigs compared to drops of 39 and 64 for the prior two weeks.  This week’s drop of 18 rigs is the smallest week-on-week drop of 2015.  The rig count has now declined by 862 (46%) from a November 2014 high of 1,876, to 1,014 on 27 March 2015.  Rigs active in the Gulf of Mexico dropped 2 (both oil focused) compared to last week’s drop of 11, bringing the total to 33.

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  • Rig Count Continues Slide; GOM Lease Sale Reflects Contracting Industry Sentiment

    Rig Count Continues Slide; GOM Lease Sale Reflects Contracting Industry Sentiment

    20th March 2015

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 39 compared to a drops of 64 and 75 for the prior two weeks.  The rig count has now declined by 844 (45%) from a November 2014 high of 1,876, to 1,032 on 20 March 2015.  Rigs active in the Gulf of Mexico dropped 11 (9 oil focused and 2 gas focused), bringing the total to 37.

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  • Rig Count Continues Slide; Closing In On A Thousand

    Rig Count Continues Slide; Closing In On A Thousand

    13th March 2015

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 64 compared to drops of 75 and 42 for the prior two weeks.  The rig count has now declined by 799 (43%) from a November 2014 high of 1,876, to 1,077 on 13 March 2015.  If the fall continues on its current trajectory, it looks like it may head below 1,000 by the end of March, and actually fall by 1,000 during April.

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  • Rig Count Decline Picks Up Pace Over Prior Two Weeks

    Rig Count Decline Picks Up Pace Over Prior Two Weeks

    6th March 2015

    Rig Count and Oil Price

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 75 compared to drops of 42 and 48 for the prior two weeks.  The rig count has now declined by 735 (39%) from a November 2014 high of 1,876, to 1,141 on 6 March 2015.  This reduction reverses the “slowdown” trend observed from the past two weeks, suggesting that there is still ample room for further falls as operators continue to slash 2015 CAPEX budgets.

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  • Rig Count Decline Slows For Second Week In A Row

    Rig Count Decline Slows For Second Week In A Row

    27th February 2015

    Rig Count and Oil Price

    The Baker Hughes U.S. onshore rig count continued its decline this week, falling by 40 compared to 50 the previous week.  The rig count has now declined by 660 (35%) from a November 2014 high of 1,876, to 1,216 on 27 February 2015. The fall for onshore rigs has slowed two weeks in a row, but it is still too early to see when activities will touch bottom.

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  • Rig Count Decline Halves From Prior Weeks - Blip or Green Shoots?

    Rig Count Decline Halves From Prior Weeks - Blip or Green Shoots?

    20th February 2015

    The Baker Hughes U.S. onshore rig count continued its fall this week, although the decline of 50 is around half the level of the prior three weeks.  The rig count has now declined by 620 (33%) from a November 2014 high of 1,876, to 1,256 on 20 February 2015. The key question is whether this represents a slowing of the trend, or is simply an artifact of reporting.

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  • Rig Count Fall Accelerates Past 2009 Levels

    Rig Count Fall Accelerates Past 2009 Levels

    13th February 2015

    GCA’s U.S. Oil & Gas Monitor shows the U.S. rig activity now declining at a rate that exceeds that seen in 2009.  Based on the Baker Hughes count there was a weekly fall of 100 in the U.S. onshore rigs, with this now having declined by 570 from a year high of 1,876 in November 2014 to 1,306 on 13 February 2015. The fall this week was the largest drop seen since the decrease started last November. 

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  • Rig Index Continues Sharp Drop Despite A Rising Oil Price

    Rig Index Continues Sharp Drop Despite A Rising Oil Price

    6th February 2015

    Rig Count and Oil Price

    GCA’s U.S. Oil & Gas Monitor shows the U.S. rig activity again declining sharply to track very closely the 2008-2009 decline trend.  Baker Hughes announced a weekly fall of 88 rigs in the U.S. onshore, with this now having declined by 470 to 1,406 from a year high of 1,876 in November 2014.

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  • Rig Index Drops Sharply Once More, Causing Late-Day Rally In Oil Price

    Rig Index Drops Sharply Once More, Causing Late-Day Rally In Oil Price

    30th January 2015

    GCA’s U.S. Oil & Gas Monitor continues to show the U.S. rig activity tracking closely the 2008-2009 decline trend.  Based on the Baker Hughes rig count, there was a weekly fall of 85 in the U.S. onshore rig count, with this now having declined by 382 from a year high of 1,876 in November 2014 to 1,494 on 30 January 2015.  

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  • Rig Index Continues Decline Trend

    Rig Index Continues Decline Trend

    23rd January 2015

    GCA’s U.S. Oil & Gas Monitor continues down on trend with the 2008-2009 decline, down a further 2 index points this week.  Based on the Baker Hughes rig count, there was a fall of 43 in the U.S. onshore rig count, with this now having declined by 297 from a year high of 1,876 in November 2014 to 1,579 on 23 January 2015.  

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  • Largest U.S. Onshore Rig Count Fall for 6 Years

    Largest U.S. Onshore Rig Count Fall for 6 Years

    16th January 2015

    GCA’s U.S. Oil & Gas Monitor shows the largest week on week drop for 6 years.  The Baker Hughes rig count noted a fall of 74 in the U.S. onshore rig count, with this now having declined by 254 from a year high of 1,876 in November 2014 to 1,622 on 16 January 2015.  

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  • New Year Experiences Large Fall in U.S. Onshore Rig Count

    New Year Experiences Large Fall in U.S. Onshore Rig Count

    9th January 2015

    In October 2014, Gaffney, Cline & Associates (GCA) reviewed the economics of U.S. Shale oil development.  Oil prices were then testing US$ 80/Bbl.  In December 2014 GCA also looked at the economics of both unconventional development activity and Gulf of Mexico (GOM) activity as oil prices started testing US$ 60/Bbl noting that U.S. unconventional activity was likely to be the harder hit sector if prices continued to weaken into 2015.  With oil prices plummeting further into the New Year, and using the Baker Hughes rig count, GCA is instituting a weekly watch on both onshore and GOM rig activity levels as oil prices and activity evolve.

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