The breakeven to add US horizontal oil rigs now exceeds $90 / barrel WTI. At $90 WTI, we can expect US operators to be cutting rigs. That is incredible by the standards of the last decade. What nostalgia one can have for the go-go days of $30 breakevens!
Rig counts
Total oil rig counts: -2 to 494
Horizontal oil rig counts: +3 to 446
The Permian horizontal oil rig count: +2
The Canadian horizontal oil rig count saw progress this week, +3 to 123, but now 5 below this week last year
The US horizontal oil rig count is falling at a pace of -0.75 / week on a 4 wma basis.
This number has been negative for 47 of the last 49 weeks
Frac spreads fell, -2 to 268
DUC inventory, as measured in days of turnover, rose modestly to 13.9 weeks
The Brent Spread (Brent – WTI) remains open, suggesting US shale oil production is exceeding expectations.