Compiled by Aaron Vandeford, Oil & Gas 360
How low can we go?
This week’s Baker Hughes rig count shows that U.S. numbers declined by 12, resulting in the total count falling to 904 and marks the second consecutive week of double-digit declines.
Canada increased compared to last week with a total count of 150, representing an increase of 11 rigs. Compared to this time last year, its total is down by 79.
Click the above image to access EnerCom’s interactive rig count dashboard
For the Month of August 2019, the U.S. rig count declined 42 rigs, the greatest one month decline since April 2016 following a period when oil prices hit a low of $26.77 per barrel on February 11, 2016.
Breakdown by region
Of the regions tracked by Baker Hughes, one experienced an increase in rigs this week:
- Mississippian is at 3, no change from last week.
On the other hand, five regions experienced a decrease:
- Ardmore Woodford is at 3, down one from last week.
- Cana Woodford is at 45, no change from last week.
- DJ-Niobrara is at 23, down two from last week.
- Marcellus is at 52, down one from last week.
- Permian is at 429, down five from last week.
All other regions saw no net change in the active rig count.
Click here to access EnerCom’s interactive rig count dashboard with data for all basins.
As the ‘live within cash flow’ mantra holds strong in the market, many have estimated, including Harold Hamm, CEO of Continental Resources that we need to be closer to 800 U.S. land rigs working to balance operations with capital discipline. (Click to hear Harold Hamm and Tom Petrie discuss the industry at EnerCom’s The Oil and Gas Conference https://www.theoilandgasconference.com/continental-resources-inc/)
