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Rig Count Decline Re-Accelerates To 2nd Biggest Drop In 22 Years
Following last week's slowing in the pace of rig count, crude prices dropped and then spiked, and it makes today's data under more scrutiny. At around $49.50, WTI prices have round-tripped back almost perfectly to the scene of the crime before today's rig count data hit. The total oil rig count dropped almost 6%, down 75 to 1,192 meaning a re-acceleration of the rig count decline and the 2nd biggest drop since 1993.
- *U.S. TOTAL RIG COUNT -75 To 1,192 , BAKER HUGHES SAYS
- *U.S. OIL RIG COUNT -64 TO 922, BAKER HUGHES SAYS
2nd biggest rig count decline since 1993
Total rig count has now dropped 38% in the last 13 weeks - just shy of the move in 2009...
Before today's data, oil had tumbled all the way back to unchanged from last week's rig count data...
The reaction was a rally higher and drop back..
But production continues to hit record highs...
* * *
Finally, here is Bloomberg to explain the 'link' between wells, production, and rigs...
Charts: Bloomberg
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so this means the next jobs report will print at 350,000
Yes the rigs are all fully automated now.
Besides that, the game is rigged.
Still above 1000, call me when they get to 600.......
I'm torn. I've got a lot of friends in the oil business who I don't want to see get hurt any more than they have already been hurt. But I'd sure like to see my SD puts do well. I hate Sandridge Energy and all the shady stuff they've done over the years.
When your puts pay off buy the first round of beers.
What's your strike price and are you holding out for an outright BK? Pretty beat up as it stands right now.....
I've got the 1.0 Put. I don't think it's going BK. Someone would step in and buy it before then. But here's hoping the stock price craters to the point management has no choice but to sell out to someone who can run a decent (and honest) operation. It's better than it used to be but the stink is still all over this company.
The trade is about the trade and that's it. Do you think your friend will be upset if he gets a nice bonus and your put expires worthless? Probably not. He'll probably say F-U for shorting my company. I say trade your trades and forget who is on the other side.
LMAO. I understand exactly what you're saying. I guess it's like watching a building burn and I'm not above making a few bucks betting on whether or not there is anyone left inside to save.
I work for the shit hole and trust me I agree on the shady shit Tom Ward and the old board pulled but the new management guys really aren't nearly as bad as the usual industry crooks. That said if oil doesn't get back up $70 by Q3 I'm pretty sure we will get bought for pennies on the dollar or have to file to reorg. Good times
We now know when a rig falls, it makes no sound. Nor does it produce joblessness according to the BLShitters.
Meanwhile, not a word about gold heading for $700.
Why would there be?
Because that is where it's going if oil doesn't go back up. The average GOR is about 12 which means gold is twice as high as it should be given it's normal relationship to oil.
That could happen. No doubt. However, we need to see a break of $1000 before we can say heading. That, at the present time, seems along way off. Then again, it could happen Sunday night.
The problem with people like yourself is you are placing a value on gold by pegging it to the petro dollar. They do not mix. No smart investor hedging his bets places a value on gold with a paper money peg. If oil drillers were smart, they would want a real asset in exchange for a real asset.
i also think gold is heading to $700-800. my call is based entirely on long term charts. especially the monthly. today's close was the lowest on the weekly since april, 2010. good luck to people long gold and/or silver. they are both going much lower.
Gas is still too cheap to drive anywhere. I feel bad saving so much money. This is probably why malls are empty and retail sales plunged' others think the same way as me.
It's one of those 'paradoxical' things like a "jobless recovery."
When you are pulling a rickshaw, gas prices are a quaint distraction.
OMG
No comment.
Rig count seems like an awfully lame predictor of much of anything (as seems to have ben shown lately). that all you got?
rig counts mean nothing. how many rigs were set to come offline anyway after the oil industry got killed on rig oversupply glut? companies still have to take delivery of about 200 more rigs over the next few years. thoughts?
Storage dearth may drive oil prices to $30
5 March 2015, by Myra P. Saefong - San Francisco (MarketWatch)
http://www.marketwatch.com/story/storage-dearth-may-drive-oil-prices-to-30-2015-03-05
As the U.S. runs out of space to store its glut of crude-oil supplies, prices for the commodity could sink to as low as $30 a barrel.