Bakken -7, Eagle Ford +2, & OPEC Revenue down 14%
This week there are no large swings in rig counts. The WTI oil price is hovering around $56 / bbl and Brent crude is at $62 / bbl. We are expecting to see a weekly rig count decline over the next several weeks. Once we are in the new year, we will release a bottoms-up forecast of Shale drilling activity.
Horizontal Rig Count Drops by 12
Permian Basin is -9 compared to previous week and +63 compared to last year at this time. Eagle Ford is +2 compared to last week and -2 compared to last year. Click here to see the interactive weekly insights report.
Bakken has 181 rigs running -7 from last week but +10 compared to a year ago. The Marcellus shale was -1 this week at 82 rigs and is -6 compared to last year.
Mississippian shale play was -1 week and -3 compared to last year at this time. Niobrara is -1 this week and +10 from a year ago.
Granite Wash was -2 this week and +1 to a year ago. Also, Utica shale play was -2 this week and +10 from a year ago.
OPEC’s Revenue Expected to Decrease by 14%
The EIA released information this week projecting that the decline in net oil exports will have a significant impact on OPEC this year. Here’s what EIA released earlier this week:
Based on crude oil market assessments in the Short-Term Energy Outlook, EIA estimates that members of the Organization of the Petroleum Exporting Countries (OPEC), excluding Iran, will earn about $700 billion in revenue from net oil exports in 2014, a 14% decrease from 2013 earnings and the lowest earnings for the group since 2010. OPEC earnings declined in 2014 largely for two reasons: decreases in the amount of OPEC oil exports and lower oil prices, with the 2014 average for Brent crude oil projected to be 8% below the average 2013 price.