Monday, October 4, 2010

Haynesville Rigs: -3 to 168; How Low Will It Go?

The Haynesville Shale rig count continued to slide last week, dropping three to 168.  Texas decreased by one rig while Louisiana dropped two rigs.  The big change is the sudden shift of drilling away from Red River Parish and the smaller surge of drilling in Sabine Parish.  Three weeks ago, there were 32 rigs operating in Red River.  Last week there were 19.  Sabine now also sees 19 working rigs.  A couple of months ago, that figure was hovering around 10.

The Louisiana rig count is off 11 from its peak at the end of July, while Texas is off nine from its peak in early July.  Rig counts are definitely dropping, as shown below.  We can definitely call a peak back in July, but the big question is how low will it go?

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