Rigs and Spreads Apr. 7: Declines within overall stagnation

  • Rigs counts fell again

  • Total oil rig counts fell, -2 to 590

  • Horizontal oil rig counts were -3 at 542

  • The Permian horizontal oil count was flat.

  • The pace of horizontal rig additions fell to -2.25 / week on a 4 wma basis.  

    • This number has been negative for 17 of the last 18 weeks

    • Rigs counts have been falling at a pace of 2.5 / week for the last couple of months, and our model suggests continued falls in the 1-2 / week range

  • Frac spreads were -8 to 287

  • At current estimated rig and spread productivity levels, we would expect the DUC inventory down over the coming month

  • The overall picture is one of stagnation, in rig and spread counts, DUC inventory, and in US crude and condensate production