• Oil rigs were up sharply this week, +8 to 869
• Horizontal oil rigs similarly rose, +8 to 772
• This report is deceptively bullish, as ‘Other US’ added 8 horizontal oil rigs, of which perhaps 4-6 are likely to roll off next week.
• The Permian added three, and with the Midland spread more favorable, we may see further adds there, as we noted last week.
• The breakeven oil price to add horizontal oil rigs fell to $65 WTI.
• We continue to feel that horizontal oil rig counts will tend to move sideways for the next few weeks.
Click 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.