Source: RigData RADAR, August 8, 2019
Bob Williams, Director of Content, RigData
So much for the range-bound US land rig count.
After languishing in a tight band between 930 and 940 for 10 weeks—save for
948 on July 5—the US active rig count broke away from this constricted space.
But it was in the wrong direction for stakeholders in a robust rig count—down
to the lowest level since the beginning of January 2018.
The recent trend of plummeting natural gas prices has taken a toll on gas-directed
rigs, down by 8 to 255. Oil rigs took a hit too, down by 5 at 662.
Permits rebounded further by breaking through the 1,000 mark to reach 1,044
after settling below that threshold the prior 2 weeks.
Storage and Inventory Levels
The EIA’s Weekly Natural Gas Storage Report for the week ended August 2
showed a net increase of 55 Bcf, with storage now totaling 2,689 Bcf. That
leaves inventories at 111 Bcf below the 5-year average but 343 Bcf higher than
US commercial crude oil inventories increased by 2.4 million bbl from the
previous week. At 438.9 million bbl, US crude stocks are about 2% above the
5-year year average for this time of year.
NYMEX WTI was trending higher today on the expectation Saudi Arabia
would take action against weakening oil prices at next week’s OPEC meeting.
Last night (Wednesday), NYMEX front-month crude prices fell to their
lowest point in 7 months, propelled by a worsening US-China trade war and
by the unexpected stock build in crude inventories. Analysts had expected a
stock draw, and the US benchmark plunged 4.7% to close at $51.09/bbl.
The front-month contract for NYMEX gas futures was trading at $2.12/MMBtu
on August 8, after falling to a 3-year low the day before. The commodity has been
threatening to pierce the $2/MMBtu floor for some time now, although gas demand
and production are at all-time highs.
FREE TRIAL OFFER
Receive a free one month trial of Platts Rigs and Drilling Analytical Report (RADAR). Each week you'll receive the latest analysis of unconventional activities and trends in the upstream market. Operators are categorized by major shale plays and unconventional formations. Plus, you'll have analysis of the drilling contractors involved by play with details on utilization, footage and market share. Available in both pdf and Excel format.
Call 800-371-0083 or email CustomerService@RigData.com
Mention code 7HHONRPT