Headline Of The Week -- June 26, 2020

We've been talking about this for at least a couple of years:

I do not recall a similar headline before the "shale era." Do we need new metrics? One suggestion, which I'm starting to see reported periodically: number of frack stages completed per week.

FWIW, the rig count, from Rigzone:

Year on year, the U.S. count is down 701 rigs from last year's 967, with oil rigs down 600, gas rigs down 102, and miscellaneous rigs up one to two. [Down 73% oil and gas rigs year-over-year.]

The U.S. Offshore rig count is down 2 rigs at 11 and down 13 year-over-year, according to Baker Hughes.

Meanwhile, in Canada the rig count is down four rigs from last week to 17, with oil rigs down two to five and gas rigs down two at 12. The region is down 102 rigs from last year's 119, with oil rigs down 75 and gas rigs down 27.

Shale production in the Bakken: we've been in the "manufacturing stage" for several years now. The "manufacturing stage" followed the boom. Name another manufacturing industry in which the number of production units decreases by 73% and production continues to set new records. This is what scares Saudi Arabia.

OPEC basket: down 6.7%. Down $2.67. Trading at $37.18. Spokesperson: Russia is happy with $50 oil. As if. LOL. Russia would be happy with $50 oil.

Bakken vs Permian: from Bloomberg this week --

As Covid-19 shock waves reverberate across U.S. oil towns, perhaps nowhere is their speed and severity more apparent than in America’s newest shale powerhouse.
Just months ago, New Mexico, the third-biggest producer of U.S. oil, approved the state’s largest budget ever, paid for by an oil boom that made up 40% of the state’s revenues in 2019. Now that plan has been slashed by more than $600 million, affecting everything from pay raises for state workers to a program designed to provide free community college to state residents.

Oil-producing states across the U.S. are facing a double whammy with both drilling and overall consumer spending cut back by the pandemic. New Mexico, meanwhile, stands as exhibit A of this boom-to-bust dynamic, with the state’s revenue forecasts plunging and more than 4,600 workers in mining, most of which is oil and gas-related, claiming unemployment insurance in the week ended June 13.

“We were just starting to stand on two legs,” said Reilly White, a finance professor at the University of New Mexico. “All of that stuff that passed, and that we were expecting this year, oil was a big part of that. The rug has just been swept out from under us.”

More:

Companies with operations in New Mexico, including Concho Resources Inc., Occidental Petroleum Corp. and Matador Resources Co., have all decreased the number of rigs they plan to run in the state this year. And many producers have also taken the unprecedented step of curtailing significant portions of their existing output.