Baker Hughes Rig Counts: Oil Rigs Stall (-3) and Gas Rigs Steady (-1)

Rig counts were broadly steady, both oil and gas, US and Canada, this week.  The slight decline in US oil rigs (-3) was stronger than the headline because horizontals were down -8, the first solid decline in a long string of relentless increases.  Gas rigs were stable, -1 overall but horizontals +3.  

Rig Count Summary
Rig Count by Basin
Rig Count by State
Canada Rig Counts

Canada
Canadian rig counts are in the seasonal trough, though the larger trends continue to differ from the US, with Gas rig activity in a long term growth trend, while oil rigs are flat year on year:

Alberta specifically:

US Shale Basins
The trends within the larger shale basins were mixed.  The Permian, while had been attracting rigs like bees to honey, stalled this week:

The Eagle Ford also dropped three horizontal oil rigs and another gas rig.  Hardly a gas classified rig remains in the EF:

The Niobrara and Utica both have been trending upwards this year:

Rig Counts: Oil +3 Gas +3

This week's Baker Hughes Rig Count report shows slight gains, as both oil and gas rigs increased by +3.  That is a new record for oil. Canadian rig counts were stable as melt season draws to a close, and should begin recovering rapidly now.

Among the major basins, notable changes were few.  The Eagle Ford added 4 to its horizontal oil rigs, while losing one horizontal gas rig.  This dropped the gas rig count to a multiyear low of 8, after a 2012 high of almost 90 gas rigs.

The Utica also made gains, adding 2 horizontal oil rigs and 3 horizontal gas rigs.

Baker Hughes Oil and Gas Well Count Q1 2014

Baker Hughes released their quarterly report on well and rig counts in major US land basins.  Previously the reports have shown a steady improvement in drilling rig efficiency, but this quarter it does not.  Weather is a likely culprit, though the stagnating well spuds are observable even in basins that were likely to be less affected by weather (like Eagle Ford).  The only basin with rising productivity was the Barnett.

Gassy Basins
PDF Report

Oily Basins
PDF Report

Rig Counts: Oil +13 Gas +10

Baker Hughes Rig Counts for today, March 7:

US Horizontal Oil Rigs rose +13 to a multi-year high of 945, up +117 from a year ago.

US Horizontal Gas Rigs rose +8 to 257, down 45 from a year ago.

Highlights:

Permian activity continued to spike, adding 14 oil rigs and losing 1 gas rig.  The Permian is only up 30 rigs year-on-year, but that reflects a horizontal rig count increase of 87, and a loss of 60 vertical rigs, so the rig power has drastically increased.

Eagle Ford lost 6 oil rigs and gained 7 gas rigs, leading one to suspect a classification change rather than a true shift in drilling target:

Other basins were little changed.  The Marcellus lost 1 rig, the Utica gained 1.   See the rig count summary and basin charts for specifics.  Canada is into breakup season where roads become impassable for a while, so those rig counts fell as expected in Alberta.  But large rig count gains were recorded in British Columbia (+15) and Saskatchewan (+8).

PDF Reports:

Rig Count Summary

Rig Count by Basin

Rig Count by State

Canada Rig Counts

Marcellus Utica Rig Count Shift

As the Marcellus and Utica expand geographically, and transportation constraints persist in Pennsylvania, the rigs are migrating West and South:

• Pennsylvania horizontals are down 50% from two years ago, to 50 rigs currently.
• West Virginia horizontals are up 50% to above 30 rigs currently.
• Ohio, where rig classification is an issue, has seen Oil+Gas horizontals rise to 29 from nothing.