Oil Rigs "Big rig drop, another inflection point"

A few comments from Steven Kopits of Princeton Energy Advisors LLC on Mar 9, 2018:

• Total US oil rigs were down this week, -4 to 796

• Horizontal oil rigs fell, -5 to 694. This was the third biggest weekly drop since the trough of the cycle in May 2016

• None of the plays, except the Permian, is above their July 2017 peak

• We appear to be once again looking at an inflection point

• Both Harold Hamm (CLR) and Mark Papa (ex-EOG) have warned that shales will not live up to expectations. Rig counts ex-Permian support this thesis.

Oil Rig CountClick on graph for larger image.

CR note: This graph shows the US horizontal rig count by basin.

Graph and comments Courtesy of Steven Kopits of Princeton Energy Advisors LLC.