Friday, April 12, 2013

U.S. Rig Count: +33 to 1,771

The Baker Hughes U.S. rig count was up big this week, by 33 to 1,771, but most of the new rigs are chasing oil, not gas.  Oil rigs were up 30 to 1,387, gas rigs were up two to 377 and miscellaneous rigs were up one to seven.  By type, horizontal rigs were up 18 to 1,102, vertical rigs were up 12 to 462 and directional rigs were up three to 206.  Among gas rigs, horizontal rigs were up two to 268, while directional and vertical rigs were unchanged at 62 and 47, respectively.


Anonymous said...

When I see the completions they always seem to say MMcf per day which to me means gas. Is that incorrect? And if there are all these new gas well completions does completion not mean producing? I do not understand only +2 gas wells this week with all those completions unless they were not gas or there were all several shut downs and it is net +2?

Robert Hutchinson said...

I'm not sure I understand. This posting refers to the rig count nationally, not completions. New wells on this list are added when they are spud (i.e. drilling begins). The wells are not completed (when production can begin) until at least a month or two after drilling commences. Completions are not usually reported until one to three months after the wells are actually completed.

Anonymous said...

So completions are already in the Rig Count?

If they show up when drilling begins then they may turn out to be in the count of national rigs but turn out later not to be productive?

And if they indicate flow in MMcf per day does that mean they are gas wells?

Robert Hutchinson said...

Addressing your questions in order:

1. A well shows up in the rig count long before it is a completion. As an example, I might report a well's status three times, once when it is initially permitted, next when it hits the rig count and is drilled, and finally when the well is completed.

2. There is no guarantee that the wells on the rig count will be productive. That will be determined later, and the exact level of productivity will be known only after the wells is completed. If a well is a dry hole, then it won't be reported in the list of completions because the operator will shut in the well.

3. Yes, gas wells are reported as MMcf/day, which is million cubic feet per day. The production number shown on a completion is a well's initial production rate as officially reported to state regulators. You should expect the actual production to decrease steadily over time as the well is depleted.

I hope that helps.

Anonymous said...

That explains it all quite well. Thanks.