The combination of greater per rig retrofit investments and expanding inventory of upgrade candidates is the equivalent of newbuilding without building new. This kind of spending invites a whole crowd of previously shunned rigs into the exclusive super-spec club. There’s a lot more to this story… Login to see the full …
Read More »Big Red And Big Blue Disagree On Rig Count Outlook… But Not Like They Normally Do.
Halliburton and Schlumberger have given two distinctly different outlooks on US rig count direction for the next three to six months over the past two business days. Interestingly, their arguments have departed from their normal advocacy tendencies. See how and who we agree more with in this update. There’s a …
Read More »Permian Drilling Permits Finally Falter. Signal Or Noise?
We take a look at drilling permit demand in the hottest oilfield in the world. What does it mean for what comes next? Also, our regular weekly tables and charts derived by applying a little infill thinking and elbow grease to Baker Hughes rig count data. There’s a lot more …
Read More »Is Recovery Outside The USA A Lost Cause This Cycle? [New Discussion Topic]
There’s a new discussion topic posted in the Thinking Aloud forum. Most of our focus at InfillThinking.com this year has been on the Lower 48. That’s because most everything else is flat to down. With the oil price outlook under pressure and only the US tight oil plays growing, it’s time …
Read More »First Look At 2018 US E&P Capex & Rig Count: Flat At The Current Strip?
While the majors talk capex in terms of multi-year programs, the Independents that drive the Lower 48 drilling & completion markets are usually reticent to discuss specific year-ahead capex details until budget season (late-4Q / early 1Q). Last week an Independent talked specifics on their 2018 development plan – one …
Read More »Recent History Says US Rig Count Will Roll Over In August If Oil Falls Sub-$40
With oil prices falling, it is worth noting what historical oil price / rig count relationships suggest about future drilling activity. In this update, we examine the oilfield reaction times that can be expected when oil prices move. There’s a lot more to this story… Login to see the full …
Read More »Permian Basin Leading Indicator Strengthens In June Despite Macro Headwinds [Charts]
For this update we took a quick look at month-to-date horizontal drilling permitting activity in the Permian Basin. There’s a lot more to this story… Login to see the full update… To read this update and receive our research newsletters, you must be a member. If you are new to …
Read More »Marcellus Scale – A Glance At The EQT / Rice Deal From A Well-Site Demand Perspective
Yesterday morning, EQT consolidated the Marcellus Shale by acquiring Rice Energy for $6.7bn in a deal that creates the largest natural gas producer (>3Bcfpd) in the US. The deal is expected to close in 4Q17. The combination and new strategic direction for the combined operator has material implications for the …
Read More »The US Rig Count Just Hit Halliburton’s “Equilibrium Point”
Last week, the US land rig count breached 900 (stands at 902). We are now at the level Halliburton famously pronounced “the new equilibrium” one year ago. We address what this means for completions, frac horsepower, and US oil production in this update. There’s a lot more to this story… Login to see the …
Read More »Payback’s A Rig. US/Saudi Drilling Reversal Continues, Bodes Well For OPEC Quota Compliance
A dramatic run up in the Saudi Arabian rig count preceded the OPEC November 2014 decision to become a price taker and defend market share. This of course triggered the biggest collapse in US drilling history. The decision to extend OPEC quotas in May was in fact predicted by just …
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