Rigs and Spreads Oct. 6: The Permian leads down

  • The Permian led rig declines this week.

  • Rig counts

    • Total oil rig counts: -5 to 497

    • Horizontal oil rig counts: -2 to 445

    • The Permian horizontal oil rig count: -2

    • The Canadian horizontal oil rig count had a bad week, down 8 to 106 and 33 below last year for the week

  • The US horizontal oil rig count is falling at a pace of -3.5 / week on a 4 wma basis.

    • This number has been negative for 44 of the last 45 weeks

  • Frac spreads rose, +5 to 260  

  • As earlier, this is still too high for the current rig count, as DUCs continue to fall.  

    • To hold DUCs steady, the spread count must fall by 26

  • Exxon is reportedly making an offer for shale leader Pioneer

    • The absorption of Pioneer into an established player like Exxon would once again mark the end of the shale revolution