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Saturday, February 5, 2022

Rig Counts: Hydrocarbon Gas Liquids; And, Quality (API) Matters -- February 5, 2022

Rig counts: finally, after ten years of blogging about this, someone else is saying the same thing, link here.

Comparing rig count to historical is a waste of time. We're drilling wells twice the length in half the time.

Length doesn't matter. The point is how fast these rigs can now drill a well. 

A new term in the oil and gas business: HGLs. Link here. Later: See comments. Apparently nothing new under the sun.

Oil and gas experience in 2020, the year of the plague: same link as above. By the way, there's a "new" hashtag at the link above which is "must" hashtag. We're going to see a lot more of this. I've alluded to it on the blog numerous times.

Crude quality matters: link here. This graph did surprise me. 



Crude Quality Matters.

1 comment:

  1. 1. HGLs is not a new term. Have seen it for years, occasionally, from the EIA. Here is a 2014 report (first link when googling EIA HGL).

    https://www.eia.gov/analysis/hgl/

    2. The Oilytics tweet is from 2019. (Warning.) Also, the peak oilers have been pushing the crude quality matters (shale is too light) meme for years now...and were totally wrong about it NOT stopping growth AND about plenty of export demand for it. But it's always been a silly argument. Slightly lighter grades from Eagle Ford or Delaware sell fine (maybe a buck less than WTI, no big deal).

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