oilfield insights

WTI Crude Knocked below $50 and US Land Rigs at 1735

With the WTI oil price trading under $50 / bbl and the crude Brent oil price near $50 / bbl, the rig counts continue to drop confirming our expectations.There has been a -25 drop in rigs with depths of >10K, with the biggest losses occurring in Texas with -18 and Colorado at -2 compared to last week. US Land Rig Count Declines The overall rig count is -25 at 1735 compared to last week with the horizontal rig count down -13 from the...

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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...

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27 Rigs down While Oil Drops 12% to $57.81

Why is OPEC cutting production? OPEC will gain relevancy again by pushing prices down below $60/barrel. At this price, several OPEC country members are below their break-even price; however, the OPEC countries likely have enough capital reserves to wait out the bottoming of the price. The two key uncertainties we see are OPEC and global demand.This downturn is much different from 2008. Many economists and traders are pointing towards gains in other areas while the Energy sector is in turmoil....

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Mobile Apps for the Oilfield

New Mobile Apps for the Oilfield: Hit or Miss?

In our normal lives outside of work, most of us rely on our smartphones and tablets heavily. We have apps that we use daily, which we probably couldn't imagine living without at this point. So why is it then when we step onto the oilfield, all that seems to go out the window? We are going to explore some of the reasons, as well as some the mobile technology solutions available today. Are There Any Useful Apps out There? This is probably the most...

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Clearing up the Media’s Account of Drilling Activity, US Rig Count -5

To no surprise to an experienced oilfield professional, rig count dropped a few rigs this week. The decline was all oil wells. Everyone is keeping a close eye on the WTI and Brent prices to understand the impact to their business and customers.This week Permian Basin is +2 compared to previous week and +95 compared to last year at this time. Eagle Ford is -3 compared to last week and -20 compared to last year. Click here to see the interactive weekly insights...

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Rig Count Declined This Week to 1842 from 1855

Welcome back from Thanksgiving! It is time to get the last remaining items accomplished by the end of the year! If you were busy eating turkey and shopping, then you may be jolted back into the market's reality today. US onshore rig count down to 1842, -13 from last week Rig counts declined this week to 1842 from 1855 last week for US lower 48 onshore rigs.  The decline is not substantial but Friday's events in the market were a surprise for many...

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Eagle Ford down 17 Rigs Compared to Last Year

Rig count remains an important indicator of oil and gas activity; however, the drops in oil prices reflect a changing dynamic in the industry. With oil prices declining, many expect to see rig count drop significantly by the end of the year. Our view is that there will likely be some leveling off this year but not a significant amount until 2015 budgets are set.This week Permian Basin is -3 compared to last week and +95 compared to last year at...

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Halliburton Acquires Baker Hughes for Integrated Platform or Pricing Protection

Halliburton (NYSE:HAL) acquired Baker Hughes (NYSE:BHI) creating an $80bn oilfield service company second only to Schlumberger (NYSE:SLB) in market capitalization. Market Share Impact We took a look at our Frac & Proppant Database this morning to get some insight on the market share of the companies. We estimate that the combined company would represent an approximate 40% share of the Frac Market with varying share mixes in different basins/regions.There are several areas where one company is significantly stronger than the other (Williston, Eagle...

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