Locator: 44836B.
A reader who follows the Bakken and the oil sector in general much more than I do sent me this note:
- the two rigs pulled out of the Williston basin included one from North Dakota and one from Montana,
- that was the last rig that had been drilling in Montana
- [for the "longest time" I think Montana Bakken had two rigs]
- this week saw the biggest drop in oil rigs (15) since the same week of 2020 [US rig count, I believe, not global]
My quick reply, not-ready-for-prime-time:
- and this is just the beginning of summer -- drilling should be at an all-time high...
- three things to think about:
- lots of talk about global recession; China slump in oil demand; even OPEC thinking about cutting oil production
- rigs and completion strategies just keeping getting better (more rigs, more drilling / rig)
- still need to post XOM article regarding this
- oil companies focusing on free cash flow; returning cash to investors (cut rigs / cut CAPEX)
