Horizontal Rigs Stay Flat While Vertical Rigs Drop -10.1%
The BHI land rig count declined -0.8% to 827 rigs from last week’s 834. The decline this week stems from the vertical rig count, which dropped 11 rigs or -10.1% from last week’s 109 rigs. The horizontal rig count stayed flat at 666 rigs and the directional rig count jumped +4 rigs to 63 from last week’s 59. The Eagle Ford sank this week by -7 rigs, 4 of which were oil rigs and 3 were gas. Basins with one rig losses included the Utica, Williston and Cana Woodford, of which all were oil rigs.
Summary of Shale Plays
- Permian Basin +0.4% to 233 rigs, compared to last week’s 232 rigs
- Eagle Ford -6.4% to 103 rigs, from last week’s 110 rigs
- Williston Basin -1.3% to 76 rigs, from last week’s 77
- Marcellus +1.6% to 64, from last week’s 63 rigs
- Mississippian +4.5% to 23, from last week’s 22 rigs
- DJ-Niobrara stayed flat at 30 rigs
- Utica -4.0% to 24, from last week’s 25 rigs
- Cana Woodford -2.9% to 33 rigs, from last week’s 34 rigs
- Haynesville stayed flat at 26 rigs
OPEC Keeping Production Level Steady
The Organization of Petroleum Exporting Countries (OPEC) met on Friday and announced unrestricted production for the next 6 months, which is targeted at 30 million barrels a day (with some estimates exceeding that number). Ryan Lance, CEO of ConocoPhillips, voiced that shale oil is here to stay, with cost cutting efforts by U.S. E&Ps requiring less investment. He also noted that rig counts are expected to rise once prices stabilize. In March, production for US crude peaked at around 9,400 tb/d.