Friday , June 22 2018
Home / Calculated Risk / Oil Rigs "Big rig drop, another inflection point"

Oil Rigs "Big rig drop, another inflection point"

Summary:
A few comments from Steven Kopits of Princeton Energy Advisors LLC on Mar 9, 2018:• Total US oil rigs were down this week, -4 to 796• Horizontal oil rigs fell, -5 to 694. This was the third biggest weekly drop since the trough of the cycle in May 2016...• None of the plays, except the Permian, is above their July 2017 peak• We appear to be once again looking at an inflection point• Both Harold Hamm (CLR) and Mark Papa (ex-EOG) have warned that shales will not live up to expectations. Rig counts ex-Permian support this thesis.Click on graph for larger image.CR note: This graph shows the US horizontal rig count by basin.Graph and comments Courtesy of Steven Kopits of Princeton Energy Advisors LLC.

Topics:
Bill McBride considers the following as important:

This could be interesting, too:

Gregor Samsa writes Swan Lake – June 21

Gregor Samsa writes Eurozone Finance Ministers Weigh Up Debt Relief

Mike Shedlock writes Trade Commissioner: EU “Stands Up for Open Global Trade” by Hiking Tariffs

Tyler Durden writes Strzok Stripped Of Security Clearance By FBI

A few comments from Steven Kopits of Princeton Energy Advisors LLC on Mar 9, 2018:
• Total US oil rigs were down this week, -4 to 796

• Horizontal oil rigs fell, -5 to 694. This was the third biggest weekly drop since the trough of the cycle in May 2016
...
• None of the plays, except the Permian, is above their July 2017 peak

• We appear to be once again looking at an inflection point

• Both Harold Hamm (CLR) and Mark Papa (ex-EOG) have warned that shales will not live up to expectations. Rig counts ex-Permian support this thesis.
Oil Rigs "Big rig drop, another inflection point"Click on graph for larger image.

CR note: This graph shows the US horizontal rig count by basin.

Graph and comments Courtesy of Steven Kopits of Princeton Energy Advisors LLC.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *