Rigs counts fell this again week
Total oil rig counts fell, -8 to 592
Horizontal oil rig counts also declined, -5 to 561
The Permian shed 4 horizontal oil rigs. No good.
The pace of horizontal rig additions fell to -1.25 / week on a 4 wma basis.
This number has been negative for twelve of the last thirteen weeks
As before, our model suggests that rig counts could erode at a pace of -1 / week for the next two months
Frac spreads were up, +4 at 276
At our estimates of rig and spread productivity rates, DUCs would again appear to be falling, and from low levels at that. Next week’s DPR should confirm or refute DUC trends, but an industry unable to hold even modest inventory levels can be presumed to be in bad shape.