Friday, January 10, 2014

US Rig Counts: Oil +15, Gas -15

The Baker Hughes Rig Counts for this week showed Oil up 15, Gas down 15.  In the past, such a symmetrical gain/loss generated questions about rig classification.  A look at the details would indicate that it's only partially true this week.  Gas lost just a few rigs in most basins, and 5 rigs in the gulf of mexico.  In the Niobrara in particular, the oil count was +4, and gas -3, so those are probably the same pieces of iron.

Most of the classification issues are in basins with windows for gas, wet gas, and oil/condensate.  Where is that?  Utica, Niobrara, Granite Wash, Eagle Ford, and to some extent maybe the Permian.

Canadian rig counts are showing their usual seasonal recovery after a sharp dive over the holidays.  In general, Canada continues to show a marked increase in gas rig activity over the prior year.  Not so with oil.  There could be classification issues here as well, I have not investigated.

Summary graphs are below.  The full reports by basin:  Gas Rig Counts    Oil Rig Counts