Friday, February 28, 2014

Rig Counts: Oil +5 Gas -7

The transition from gas to oil drilling continued in the US this week, with oil rig counts up +5, including +5 horizontal rigs.  Gas rigs fell another 7 rigs (6 horizontal, 1 vertical) to 335, and are now down 85 from last year at this time.

Canadian drilling activity remained strong before upcoming seasonal decline in activity, with oil rigs +2 and gas -6 (an 11 rig decline in Alberta).

The Permian and Eagle Ford remain the most active regions by a large margin.  Most of the mature gas basins (Barnett, Fayetteville) showed flat activity on the week, while the long term downward trend in drilling in the Granite Wash continued, with oil rigs down 2 to a half year low, and gas rigs down 1 to a paltry 5 rigs running.

Notable Changes:

  • Permian basin momentum continues, with rigs up 6 to 493
  • Marcellus drilling declined by 4 rigs to just 78, but three of the lost rigs were vertical.  That's down 18 in a year.
  • Granite Wash activity declined by 3 rigs to 51, down 18 in a year
  • Utica drilling was flat at a strong 41 rigs.  
  • Haynesville gained 1 rig to 42.

Activity in the new and/or growing plays: