Rigs and Spreads Sept. 8: Continued Unwind

  • Horizontal oil rigs rolled off again this week

  • Rig counts

    • Total oil rig counts were +1 to 513

    • Horizontal oil rig counts were -4 to 459

    • The Permian horizontal oil rig count was down 2.

    • The Canadian horizontal oil rig count continues to look frail, down 23 from last year.  

  • The US horizontal oil rig count is falling at a pace of  -2.75 / week on a 4 wma basis.

    • This number has been negative for 40 of the last 41 weeks

  • Frac spreads rose, +8 to 252.  Not sustainable without rigs additions.

  • DUC inventory fell back to 17.3 weeks

  • Overall, we continue to see more of the same:

    • Roll-offs of horizontal oil rigs not justified by oil prices; frac spread counts at unsustainable levels; and a continued unwind in the Permian