Friday, April 5, 2013

U.S. Rig Count: -10 to 1,738

The Baker Hughes U.S. rig count was down ten this week to 1,738.  Oil rigs were up three to 1,357, gas rigs were down 14 to 375 and miscellaneous rigs were up one to six.  By type, horizontal rigs were down 15 to 1,084, vertical rigs were up eight to 451 and directional rigs were down three to 203.  Among gas rigs, horizontal rigs were down 11 to 266, directional rigs were down two to 62 and vertical rigs were down one to 47.

4 comments:

Anonymous said...

Kind of surprised that gas rigs seem to be taking another leg down with NG rising for the YTD and now over $4. I wonder how busy completion rigs are?

I know Goodrich isn't drilling any NG wells but they are completing a Angelina River Trend well, for $5m, that they drilled a year ago and they are, with Chesapeake as operator, completing 12 gross/5 net wells previously drilled in Bethany Longstreet, for $15m. So for $20m GDP gets 6 net wells that will most likely provide good NG volume. Depending how often this scenario is being repeated will have an impact on NG prices for the rest of the year.

TC

Robert Hutchinson said...

Excess drilling over the past several years, at least in the Haynesville Shale, created a backlog of uncompleted wells. I've assumed that increases in gas prices or a need to produce more to meet pipeline contracts will be met by producers completing wells from the backlog rather than new drilling.

I'm not sure where the "tipping point" is, but I am a bit surprised to see gas rigs dropping again now.

Trevor said...

Is there any way to search for the number of "uncompleted wells" that are waiting on completion? It would be great to see how many wells have been drilled and how many of those are waiting on comp. by operator? Does this search exist?

Robert Hutchinson said...

Trevor,

Sorry for the delay in responding. Check out this link: http://www.haynesvilleplay.com/2013/04/us-rig-count-10-to-1738.html. It will take you to a page at the LA DNR web site where you can download the most recent list of Haynesville wells (third box on right) and their count of uncompleted wells (fourth box). This information is strictly for Louisiana. Texas doesn't have a similar resource.

Please note that the DNR's counts don't line up with mine exactly. I've included wells that are characterized as Jurassic but that are really Haynesville and some lower Cotton Valley wells that are actually Haynesville. Plus there are a few, for whatever reason, that have slipped through the DNR's count. The DNR list also shows an inflated rig count because they are dependent on operators reporting rather than getting their data from third parties. But the DNR's spreadsheets do help give you a general idea of what's going on, especially where it concerns wells that are not yet completed, for whatever reason.