U.S. RIGS: DOWN FROM 1920 TO 1192
The US drilling rig count plunged 75 units—all on land—to settle at 1,192 rigs working during the week ended Mar. 6, according to data from Baker Hughes Inc.
That total is the lowest since Dec. 11, 2009, and 600 fewer units compared with this week a year ago. The count has now fallen in 14 consecutive weeks, losing 728 units during that time.
"This reduction reverses the 'slowdown' trend observed from the past two weeks, suggesting that there is still ample room for further falls as operators continue to slash 2015 capex budgets," noted Gaffney, Cline & Associates in its weekly commentary.
The average US rig count for February, meanwhile, was 1,348, down 335 from January and 421 from February 2014.
Land rigs now total 1,133. Unchanged during the week were offshore rigs at 51 and rigs drilling in inland waters at 8.
Oil rigs plunged 64 units during the week to 922, down 653 units since Dec. 5. Gas rigs dropped 12 units to 268. Rigs considered unclassified doubled to 2.
Rigs engaged in horizontal drilling plunged 51 units to 895. Since Nov. 21, 477 units have gone offline. Rigs drilling directionally, meanwhile, dropped 7 units to 120.
Canada's rig count lost 30 units for the second straight week, settling at 300, down 287 compared with this week a year ago. The updated total is split evenly between oil and gas rigs, which respectively lost 21 and 9 units during the week.
The average Canadian rig count for February was 363, down 5 from January and 263 from February 2014.
The worldwide rig count for February was 2,986, down 323 from January and 750 from February 2014—entirely comprised of losses in North America. Meanwhile, Asia Pacific gained 8 units since January to 240, Europe gained 5 units to 133, and Latin America gained 4 units to 355.
Major states, basins
After relinquishing its post last week as the leader in losses of the major oil- and gas-producing states, Texas reclaimed the top spot this week with a 32-unit fall to 538, the state's lowest total since Jan. 15, 2010.
The state's decline is reflected in the largest weekly loss of the major US basins, a 22-unit drop in the Permian to 333, as well as an 8-unit drop in the Eagle Ford to 149.
Oklahoma, New Mexico, and Pennsylvania each lost 7 units to 139, 61, and 47, respectively. Pennsylvania's decline reflects a 6-unit drop in the Marcellus to 62.
Colorado was down 5 units to 39, its fewest since 2009. North Dakota, last week's leader with an 11-unit drop, was merely down 3 units to 105. Louisiana, Kansas, and Utah were each down 2 units to 100, 15, and 9, respectively. Ohio, Wyoming, and California each edged down a unit to 35, 32, and 14, respectively.
Unchanged from a week ago were Alaska at 12 and Arkansas at 11. Alaska last week was the lone state to report a gain, shooting up 5 units. This week, West Virginia is the only state with a gain, edging up a unit to 17.
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U.S. EIA - Energy companies’ free cash flow—the difference between cash from operations and capital expenditure—was $119 billion for the four quarters ending June 30, 2018, the largest four-quarter sum during 2013–18 Companies reduced debt for seven consecutive quarters, contributing to the lowest long-term debt-to-equity ratio since third-quarter 2014
OPEC - Total oil demand for 2018 is now estimated at 98.82 mb/d. In 2019, world oil demand growth is forecast to rise by 1.41 mb/d. Total world oil demand in 2019 is now projected to surpass 100 mb/d for the first time and reach 100.23 mb/d.
ARAB NEWS - Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
PLATTS - The International Energy Agency expects the US to account for 75% of the global growth in natural gas exports over the next five years, a bullish outlook for LNG developers facing challenges at home getting projects off the ground and abroad with tariffs affecting trade flows.