Oil rig count decline continues to slow

London, 2 March 2015

The US oil rig count declined this week by 33 rigs (29 horizontal, 3 vertical and 1 directional). Goldman Sachs report that while this marks the second consecutive week of modest rig count decline, unlike last week: (1) the Permian horizontal rig count resumed its decline and (2) the rig count featured little evidence of high grading (higher rig count in the more productive counties). The current US horizontal and vertical rig count across the Permian, Eagle Ford, Bakken and Niobrara shale plays implies that US oil production growth will reach 385 kb/d yoy by 4Q15, according to Goldman, down 55 kb/d vs. last week’s rig count (with the prior three weeks implying declines in production growth of 60, 130 and 160 kb/d).

Source: Commodities Now feed

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