Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
toolpush wrote:And don't forget the poor Canadians, down 34%, Last week 391, this week 256 a fall of 135 rigs
Now I am sure it isn't just because they all have kind bosses who decided to give them Christmas New Year off. Just think two more weeks like that, and they will be down to zero rigs working.
The Canadian drilling season is during the winter. When the roads melt, sorry when the snow melts, they all go for a break, and come back when things dry out.
http://phx.corporate-ir.net/External.Fi ... U9MQ==&t=1
Since the beginning of 2014, the number of oil rigs in operation increased by 121, or ~9%. In comparison, oil rigs increased by 64 during the same period last year. Despite this week’s sharp fall, activity in the oil-rich Permian Basin in western Texas drove most of 2014’s increase. This region added 68 oil rigs.
toolpush wrote:http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-reportsother
New rig count out.
Canada still dropping. Down 48 I would have though if it was a Christmas break, that this would have been flat at worst?
US down 29 split fairly evenly between oil and gas
Permian down 6
Eagle Ford down 4
California down 6 after a big fall last week
Bakken steady
http://www.bloomberg.com/news/2015-01-06/biggest-oil-rig-drop-since-2009-spells-tough-year-ahead.htmlU.S. oil drillers laid down the most rigs in the fourth quarter since 2009. And things are about to get much worse.
The rig count fell by 93 in the three months through Dec. 26, and lost another 17 last week, Baker Hughes Inc. (BHI) data show. About 200 more will be idled over the next quarter as U.S. oil explorers make good on their promises to curb spending, according to Moody’s Corp.
Drillers are already running the fewest rigs in nine months after a 46 percent drop in U.S. benchmark West Texas Intermediate oil in 2014, the steepest decline in six years and the second-worst since the commodity began trading in 1983. The price slipped below $50 a barrel yesterday as U.S. producers and the Organization of Petroleum Exporting Countries remain in a standoff over market share. Meanwhile, production from Russia and Iraq last month reached the highest level in decades.
“At $50 oil, half the U.S. rig count is at risk,” R.T. Dukes, an upstream analyst at Wood Mackenzie Ltd., said by telephone from Houston. “What happened in the last quarter foreshadows what’s going to be a tough year for operators. It’s looking worse and worse by the day.”
West Texas Intermediate for February delivery fell $2.65 to settle at $50.04 a barrel yesterday on the New York Mercantile Exchange. The intraday low was $49.68. Brent, the international benchmark, tumbled $3.31 to $53.11 on the London-based ICE Futures Europe Exchange.
Core Areas
“Drillers are retrenching into their core areas of production and moving out of less productive, less profitable and less prolific plays,” Matthew Jurecky, head of oil and gas research for the London-based research company GlobalData Ltd., said by telephone from New York yesterday. “In this environment, the one thing that will stop immediately is exploration-type testing in new zones.”
Unlike previous years, when rigs have rebounded following a winter holiday slump, the count “will just continue to drop off,” Steven Wood, Moody’s managing director of oil and gas, said by telephone from New York yesterday. “We would expect to see the rig count drop a couple hundred rigs as we go into the first quarter. And after that, it’s about what happens to commodity prices.”
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
toolpush wrote:http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-reportsother
Well, the rig count is certainly dropping, with more to come by the sounds of things, with stories of Companies going for early retirement of contracts as posted above, still coming through the system.
American count down 61
Permian count down 28 but still above 31 above 12 months ago
Bakken continues its steady decline, down 8
California seems to stopped it drop of the last couple of weeks.
Apart from a 3 from the Eagle Ford and Mississipian, the other shale areas seem to be holding up fairly well. These other areas may have more permit drilling going on, being newer plays.
The gas plays didn’t seem to have changed at all. So with the current cheap Nat gas price, we will have to wait and see if the gas area rigs decline along with the oil rigs or hold up against gravity.
It looks like Canada is back from Christmas dinner, a cheery New Year.
toolpush wrote:Subjectivist,
About the gas drilling. Marcellus gas has been getting between $2 and $2.50 all year, and everybody seemed ok with that, waiting for more takeaway capacity to come on stream. In the last few weeks, Marcellus gas has gone below $1!! That is enough to get all the gas players attention and this is in the middle of winter?
I believe we have yet to see the reaction form latest price fall.
http://www.eia.gov/naturalgas/weekly/
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