RigData Insights

"Head Faked" By Rig Count Bottoming Out

  • Tuesday, June 30, 2015
  • Posted By Unknown
The apparent bottoming out of the active rig count through mid-June now seems to be a “head fake,” according to RigData analysts, writing in the latest issue of the RADAR Report. When the rig count held at 787 twice in a row in mid-June, it raised hopes that the tally had reached bottom. But that proved wishful thinking, as the rig count then resumed its decline to 764. Major unconventional plays took the hit with a -26 rig drop since end-May, landing at 584. The decline was equally split between major unconventional oil/liquids and unconventional gas.  The Northeast region realized its largest decline in several months, with both the Marcellus gas shale (-12) and the Utica liquids shale (-8) seeing major slowdowns. Major gas shales saw a -10 rig change, while gas tight sands dropped by -3 rigs. The other major unconventional gas plays were relatively constant with minimal changes. Major unconventional Oil/Liquids also decreased by -13 rigs since the end of May, with the other big liquids play drop hitting the Eagle Ford, which shed another 6-rigs.




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