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US Oil Rig Count Collapses To Over 4 Year Low (as Production Hits Record High)
US oil rig count tumbled almost 6% YoY - its biggest annual drop in 15 months. However, the 13% collapse in the last 8 weeks is accelerating faster than the 2001 and 2008 crisis and has dropped rig count to its lowest since October 2010. At the same time production is surging - in fact at its highest pace on record... the game of chicken continues.
Rig count is collapsing
As WSJ shows below, extraction is surging as drilling plunges...
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Lag time, Bitchez!
This is so bullish. You could throw a dart at any sector and make money! Booyah!
And oil futures are up...Thank god the market ain't rigged.
In 6-18 months, if we still have a financial system, oil probably will be back up. Unless oil prices go up within the next few months, we're going to see any slack in the supply evaporate.
Oil use is economy dependent, no economy will tank the world market and the Saudi's can go back to herding goats.
Hence the qualifier about "if we still have a financial system left." If we don't, then yes, goats for everybody!
Major cost for producers is in field development and drilling, and it looks like they have done all that's necessary in that regard, so the production revenues rise from here, as the costs of development plunge, so the economics from here for many producers may not be as bad as many expect. i.e. this can potentially go on for years at these production levels before more investment and a higher price is required to fund further production.
All speculation but don't presume this production level will end soon as it may last for many years.
Well OIL Be fucked ;-)
Long pawn shops
That'll be interesting to see how pawn shops handle the sudden influx of 1yr old powerstrokes with 8" lifts rolling on 37x12.50x20s.
long sleezy bitches (cheaper), ha...
Do you live in Edmonton?
NM. I've just seen too many people who work in boom-bust industries and the "toys" that they like. In the nothern and southeastern parts of the state, that's oil and gas. Locally, it's McMansions.
Oil production is in the game the last man standing. But with the House of Saud flatlining production, the US relient on shale, OPEC fudging their numbers, and Russia ever relient on advancing technology and drilling techniques - there is no moar low hanging fruit - the game won't last long.
The small guys are the first to go - junk shale plays, junk tar sand plays, ISIS captured wells - but in time due to the economic catasrophe set up by the banking institutions.
Seneca cliff. Is it going to be this round of financial stability that kicks things off, or do we have to wait another 7 years for shit to cycle again before all support that could keep things going further is gone?
Either way, this is looking like it may get my schadenfreud up watching in the near future as Obama explains his own financial crisis and his own bad economy. The Liar-In-Chief will have to tell some whoppers if this plays out in a manner even remotely resembling what I expect.
Obama is a puppet and nothing moar. This is a banking crisis that got oil - the lifeblood of the economy - buried 6 feet deep along with employment and investing.
There have been no rational decisions made by any politician in 8 years because they are at the behest of bankers. The governments are owned outright by central banks that have decided order out of chaos is a meme. What they don't understand is they are not like nature, they are fools living in paradise. Their plans are childrens games, they will not live to see a day where they rule like kings for their empire was built on sand.
- Voltaire
Puppet or not, I don't like him and I will enjoy watching him try to be all hopey and changey while shit falls apart around him.
Gut tells me he isn't going to (be lucky enough) to hand this rig off to his successor in the same shape it is now.
Think about the options for another serious financial crisis. What I come up with:
Print MOAR! (This will eventually destroy the dollar, make the former middle class even more formerer middle class.)
Steal retirement accounts. (Could lead to some very crochety old people to understand that the status quo is dead.)
Allow mass defaults. (People's bank accounts will get nuked and the world may not be so trusting of the dollar after that, especially if it is a soverign default, which would happen with the ensuing deflation.)
Start subsidizing the shit out of things like oil. (See: Print MOAR!)
War! (Wanna bet it won't go nuclear? Also, see: Print MOAR!)
There may be a few other options, but I don't see any way out of what happens at the next major financial crisis.
oil to 40 by the end of this month
Dow Jones to $40 by the end of the year.
Interesting, that would imply a lot of slack in the supply chain considering America still consumes some 18 million barrels per day.
it's not about supply and demand, future contracts gone
Paper cares not about reality.
(Unless that reality is a match, of course!)
Looks Like ol' T. Boone Pickens knew what he was talking about...
Rig count, bitchez! The only number you need.
So in response today, oil is UP, and oil services stocks like SLB and HAL have spiked over 4%.... This is all manipulated... and shorts get killed everywhere in the world
pump that shit and take the cash as they run to the cargo door and bail out with the golden parachute.
Yet there are 1676 rigs still operating..................
It's a disaster!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Oil to zero!!!!!!!!!!!!!!!!!!!!!!!!!!!!
You guys are funny.
Soooo...the walls in the 53th Precinct aren't bleeding yet, I assume.
Here's what this article misses.. Yes the US ring count has done this over the past 7 weeks:
1920, 1893, 1875, 1840, 1811, 1750, 1676.
But our friends to the North...the Canuks have been doing this:
422, 431, 391, 256, 208, 366, 440
So ring count has not changed in 2 weeks. Looks like the Canucks are Drillin' baby Drill!!!
Those Canadians are crazy! So in four weeks they shut/(turned off) half of their rigs and then in two weeks they doubled the number of operating rigs!
Yepper...and my guess is as follows: they are leaping on the "kill shale" bandwagon. Their oil sands are now significantly cheaper to drill than the fracked shale deposits. Once the oil sand are devloped (bigger up front cost), the wells last a whole lot longer than a typical shale deposit. In other words, I'm not seeing them wanting to take it in the poopur for the shale frackers.
" Listen " . use your word man!
Chicken? Or sauve qui peut?
Or maybe it started as chicken ...
It's: whale oil beef hooked.
Forget the rig count for a while. Increasingly the wells drilled aren't even being fracked.
Beer....Steel Reserve....still just beer
your chart says oil rigs but it shows the gas and oil total