Source: RADAR | September 29, 2017 

Is the prior week’s jump of +24 rigs in the active rig count, as tracked by Platts Analytics’ RADAR, looking like a head fake now? For the latest sample date of September 29, the weekly tally has slipped below 900 (to 895) for the first time since mid-July of this year and the lowest point since mid-May 2017.

The drop of -38 rigs from the previous report—which in turn had marked a sequential gain of +24—came across the spectrum of categories. Total oil rigs dropped by -61, while total gas rigs rose by +23. Horizontal rigs fell by -17, but that happened after rising by +14 in the prior report.

Compared with the previous issue of the General Trends Analysis edition of RADAR, the declines were well distributed among all the major drilling regions, which would seem to underscore the earlier RADAR commentary’s conclusion that the “Big Stall” is turning into the “Big Slide,” i.e., the usual Q4 downturn in rig count that accompanies independents’ scrambling to wind down their drilling programs ahead of yearend. However, we also have to note that heavy rains in Kansas kept a number of rigs in the float in the current count, so look for a modest recovery in RADAR’s next active rig count, especially on the oil rig side.

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