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Monday, August 6, 2012

Flirting With 200 Active Rigs in North Dakota -- And It's Time For a New Poll

Down to 203 today; record high was 218 for this boom.

Sounds like it is time for a new poll.

Here are the results of the last poll, in which we asked: "Do you agree with the proposition, that if you've got a business, you didn't build that. Someone else did." 

Overwhelmingly, "are you kidding?" was the #1 response at nearly 60%. About 10% of folks must have misread/misunderstood the question, by answering "yes." Some people continue to think what the president said was taken out of context. Thank you for YouTube running the entire segment, not just the sound bite.

So, for the new poll: The number of active rigs in North Dakota continues to fall. Today "we" are down to 203 from a record high of 218. Many Bakken operators have said they will be cutting back on number of rigs. There are so many ways to look at this and so many questions that could be asked, but I will simply ask: Is this good for "North Dakotans" that the active rig count is decreasing?

8 comments:

  1. http://www.chk.com/News/Articles/PressReleases/08-06-12%20Q2%202012%20Earnings.pdf

    Anon 1

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    Replies
    1. Thank you. I haven't had a chance to read it, but will do so later.

      Delete
  2. Flat to down rig count is good. Let's the rest of what is needed catch up. But, it probably is not yet fewer wells. Rig efficiency is way up. More wells with fewer rigs is better than way more wells from more rigs. as long as the drop is mild. A drop to 5 rigs is not good. 175-200 might be ideal. Maybe even 150.

    ND Medora lease sale cometh. A wonderful place for it on a sunny day. Drive safely.

    anon 1

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    Replies
    1. Agree completely. It's all about overall production, not the number of rigs. Except for the workers, truck drivers, etc.

      Delete
  3. A good question is currently, what % of leases are HBP as opposed to the total number of leases. I am referring to the "hot" Western counties including Williams, Mountrail, McKinzie and Divide. How many rigs are currently moving into the Eastern MT area where numerous leases remain open with nearing expiration dates. I know that Marathon has moved at lease one rig into the Sheridan County, MT from Williams County. I believe the ND rig count will fluctuate over the next couple years.

    ReplyDelete
    Replies
    1. Yes, I've mentioned that. Several rigs, once in North Dakota, are now in Montana, and Montana drilling is increasing.

      Delete
  4. Some % of the fluctuations in rigs is due to suitability, more efficient drilling platforms arriving from supplier backlogs is occurring, the upgrades are more optimal for the Bakken and thus enable the drillers to repurpose the older less efficient rigs to operations elsewhere, like Kansas or OK.
    Anyone with a long term view as depicted in this blogs evolution, knows that the initial rush was expedient driven by HBP.

    We will see better engineered solutions applied to the Bakken, thereby improving the performance from the Bakken.Its the work experience, the details about recovery of particulate oil that is driving the changes at the rig mfg level.

    When not much was understood about optimal, the momentum had to be started, by on hand inventory, now being moved elsewhere.

    ReplyDelete

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