Tuesday, February 14, 2012

Rig Counts: Visual Perspective

I've always been a believer that a picture usually can say more than words.  That belief is particularly strong when discussing rig counts.  It's not an particularly brilliant analysis, but just look at the chart below (red = gas rigs, blue = oil rigs), showing rig counts since 1987.

It's interesting to see the changes in the domestic energy industry over the past decade.  The shift to oil drilling is particularly dramatic given the context of the past 35 years of history - it's the proverbial "hockey stick" line.  The question is, where does it stop and what happen to the shape of the line when it does?

1 comment:

Zoie Neala said...

Pretty interesting chart on gas and oil rigs there mate! To answer your question about where that oil drilling will stop, I guess in all honesty that it's not. It's just going to shift or move to other seas, the North Sea has been overtly saturated over the last half century. gas flare stack