US oil and gas rig count posted a weekly decline to open the month, falling by 7 vs. a week ago to 618 for the week ending November 3 according to Baker Hughes. Rigs were added in Appalachia (+1) and All Other (+2), while the Permian (-3), Gulf of Mexico (-3), Haynesville (-1), Anadarko (-1), Bakken (-1) and Niobrara (-1) all lost rigs. Total US rig count is down 41 in the last 90 days, and down 152 vs. this week a year ago.
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DUC, DUC, Produce - The New EIA DUC Estimates and U.S. Oil & Gas Production, Part 2
The inventory of drilled-and-uncompleted wells (DUCs) in the U.S. Lower 48 grew by nearly 1,900 between the months just before oil prices and rig counts collapsed and early 2016—a 50% increase in a roughly two-year period, according to new DUCs data in the Energy Information Administration’s (EIA) September Drilling Productivity Report (DPR—See the DPR DUC report here.). Since January’s peak of nearly 5,600 DUCs, producers have been working down the national inventory of DUCs, with the DPR showing the overall count closer to 5,000 as of August (2016) ––but that is still up more than 1,300 from the December EIA’s 2013 baseline. This incremental growth in the number of “dormant” wells is key to understanding and predicting how long production can remain supported or grow in a low-rig count environment. Moreover, there are regional differences in the DUCs inventory counts and trends that provide critical insights on how various market factors are impacting drilling activity. Today, we walk through the EIA DUCs data for each of the producing regions.
- Analyst Insight
US Rig Count Posts Third Consecutive Decline To Close Month of August
US oil and gas rig count posted it's third consecutive weekly decline, dropping two rigs vs. a week ago and falling to 583 for the week ending August 30 according to Baker Hughes. Rigs were added in the Anadarko (+2), Eagle Ford (+1) and Gulf of Mexico (+1), while Appalachia (-2), Permian (-1), Haynesville (-1), Niobrara (-1) and All Other (-1) all lost rigs. Total US rig count is down 17 in the last 90 days, and down 48 from this week a year ago. Oil-directed rigs (483) were flat this week, while gas-directed rigs declined by two to 95.
- Analyst Insight
US Rig Count Continues To Stagnate, Remains at 621 Rigs
US oil and gas rig count continues to be stagnant, with total US rigs at 621 for the week ending January 26 according to Baker Hughes, a gain of one vs. a week ago. Rigs were added in the Permian (+3) and Niobrara (+1), while the Eagle Ford (-1), Haynesville (-1) and Gulf of Mexico (-1) all lost rigs. Total US rig count is down four in the last 90 days, and down 150 vs. this week a year ago.
