Friday, November 6, 2009

North LA Rig Count Up; Gas Price Down

I've been traveling today, so I'll combine posts week-ending posts. First, rig count. The Baker Hughes count for the U.S. was up by nine rigs to 1,078. Of that number, 68% were gas rigs - same as last week - and 47% were vertical - up 0.5 percentage points this week.

In the Haynesville region (including some other formations) the total rig count was down by two to 151. The count decreased by six in east Texas but increased by four in north Louisiana. North Louisiana now represents 15.1% of the gas rigs running in the U.S.

Second, gas prices. The spot price closed down 9% to $3.91/MMBtu. It was a volatile week with the price reaching as high as $4.49 and sinking as low as today's price. The average close for the week was $4.25.

2 comments:

Anonymous said...

It is deceptive to post a headline that implies the Haynesville Shale rig count is down without having facts to support. The Haynesville Shale rig count was actually up by one in Louisiana and was likely flat or up for the entire play.

Les B

Robert Hutchinson said...

Unfortunately it is not entirely accurate to use the Baker Hughes count either. It has too much volatility because it is too accurate - in that it only counts rigs that are actively working, not just under contract or moving between sites. Unfortunately it is all that I have access to at this point. I changed the headline slightly to reflect what I do know.