This morning, once the first reports started coming in: 189.
Now, 11:01 a.m.: 186.
| 11/3/2014 | 11/03/2013 | 11/03/2012 | 11/03/2011 | 11/03/2010 | |
|---|---|---|---|---|---|
| Active Rigs | 186 | 181 | 188 | 194 | 152 |
Perhaps too early to say, but I enjoyed the comment last week from a reader suggesting that rig counts won't drop this fast because of outstanding contracts and CAPEX set in place some time ago. I agree. I think decisions were made some months ago. EOG appears to have pretty much stopped drilling in the Bakken several months ago, before the slump in oil prices. The question is how much of this has to do with the slump in oil prices and how much has to do with quite a few other factors, previously posted.
Before you all get too excited, 186 is about normal for this time of year, it appears. Several readers have suggested that the "193" was artificially high due to late reports (or non-reports) coming in to the NDIC.
The rig number is still not right either. SST 58 is still on the list, Nabors B12 still shows up twice and Patterson 305 for MBI is now stacked out. My guess is it may get down to about 175 or so by the end of the year.
ReplyDeleteYes, we've talked about that before; the rigs as noted by the NDIC. 175 before the end of 2014?
Delete:(
ReplyDeleteI don't like it when the rigs go down. Only consolation is it shows that supply and demand hold true.
I agree; I don't like it when rigs go down either. I see rigs as "jobs."
DeleteThe drop in rigs appears to be mostly "spud "rigs. There were quite a few on the list on Friday, now I see only three on the list.
ReplyDeleteThank you. I need to hire a subcontractor to track rigs -- joking. Thank you for taking time to write; I had forgotten about spud rigs. Back to 187 this morning.
DeleteEvery company has at least some circumstances that are not common to the sector.
ReplyDeleteIn the case if ego, a lot of their leases are now hbp so very little time urgency for drilling out their land.
Also, eog has large positions in eagle ford and the Permian basin. These areas are more profitable because of lower drilling costs and better infrastructure compared to the wb.
Also, it is likely eog wants to lock up the land since many leases are still undeveloped and in the primary term. I see these as the major factors leading eog to focus it's resources elsewhere at this time. Eog will be back.
I agree completely. I think EOG is one of the best investment opportunities in oil and gas -- oh, oh, did I just say that. This is not an investment site. But to continue the thought. One of the best things about EOG is exactly what you said: diversified in multiple fields. I've always been leery / wary of companies whose eggs were all in one basket, even it was the Bakken.
DeleteAs far as current ops are concerned, I am most impressed with Hess.
EOG didn't go anywhere. They have 4rigs up. I just saw 3 of them within 300 yds of each other in the Parshall field south of Hwy 23 east of New Town!
DeleteScroll through "new wells reporting" for the most recent completed quarter, 3Q14:
Deletehttp://themilliondollarway.blogspot.com/2014/06/new-wells-reporting-2q14-williston.html
EOG reported five wells total and the most recent were July 23. That's not a lot of activity.
In this quarter so far, through November 4, 2014, they have not reported any completions:
http://themilliondollarway.blogspot.com/2014/09/new-wells-reporting-4q14-williston.html