Friday, November 18, 2016

Rig Counts Revive: Oil Up +19, Gas +1

Rigs were put to work last week, with oil rigs adding 19 and gas another 1.

The rig count seems to be telling us something about where the economic opportunities are in this $45 oil, $3 gas market.  The ten week chart shows significant gains in the Haynesville Shale, and the Permian Basin, with more recent, smaller increases in the Eagle Ford and Cana Woodford Shale.  Not much change in either the Utica or the Marcellus.

But producers have added the most rigs in the last six weeks to the one basin that seems bottomless at any price.....