Friday, April 16, 2010

US Rigs +15, Almost All Gas Rigs; Haynesville Rigs -1

The Baker Hughes weekly rig count showed yet another increase in national rig count, up 15 to 1,491.  Of the net 15 increase, 14 are targeting gas and only one is targeting oil.  Given the different trajectory of gas and oil commodity prices, that surprises me a bit.  The biggest increases in gas rigs came in the Barnett Shale, the Anadarko Basin, the Arkoma Basin and SE Texas, all areas I consider more mature, not areas where producers are drilling to hold leases.

By type, horizontal rigs were only up by five, while directional rigs increased by seven and vertical rigs increased by three. 

In the Haynesville region, inclusive of other formations, the rig count held at 217 for the third straight week, with a net one increase in east Texas and a net one decrease in north Louisiana.

Looking at the individual rigs, I calculated that the Haynesville rig count dropped by one to 175, up one in Texas and down two in Louisiana.  Of note, Petrohawk's rig count dropped by three (there was one that was debatable, but I excluded it, so the real decline might be two), which is about what company management indicated would happen earlier this week.  Chesapeake's rig count is also down by two from its recent high two weeks ago.


2 comments:

Anonymous said...

The producers are drilling to hold on to leasehold and perform on lease agreement. The way I understand it, if they don't drill, they forfit the lease under breach of contract. This type of activity is suspected to slowly subside 3rd & 4th quarters into 2011. This will allow the market to correct supply imbalance by shut-in's or heavy choke. Price will rally at that point. I hope.

Robert Hutchinson said...

Yes, but the increases came in the Barnett Shale, the Anadarko Basin, the Arkoma Basin and SE Texas, all areas I consider more mature, not areas where producers are drilling to hold leases. (I'll amend the post to note this)