Rigs counts were down

Total oil rig counts fell sharply, -10 to 613
Horizontal oil rig counts also fell, -6 to 559
Four of the six lost horizontal rigs were in ‘Other’, that is, not in major plays
The Permian horizontal oil rig count was down only 1
The pace of horizontal rig additions fell to -2.0 / week on a 4 wma basis, quite a poor performance considering recent oil prices

The calculated US breakeven to add horizontal oil rigs rose to $82 / barrel WTI versus $81 on the screen at writing.
Frac spreads rose, +4 to 258, still no higher than in February nearly a year ago
The EIA published the January edition of the Drilling Productivity Report (DPR) this past week

In the current report, crude and condensate production from key shale plays rose to 9.04 mbpd in December, up 79 kbpd from November. Total shale oil production growth has averaged 82 kbpd / month over the last three months
In the January report, the EIA revised up historical shale production quite sharply, on average by more than 130 kbpd in the Sept. 2021 to June 2022 time frame. Current growth rates appear smaller as a result of base month upward revision.
Permian oil (C+C) production was up 38 kbpd in December. Permian production growth has averaged 38 kbpd per month over the last three months
The DUC inventory bottomed in November and was up modestly in December. We had anticipated the trough in September, but the correction was slower than expected

We continue to see a disconnect between DPR oil production numbers and those reported in the monthly STEO and the weekly PSR

The DPR suggests healthy production growth; the other reports suggest all but stagnation in output