Rig counts
Total oil rig counts declined, -3 to 534
Horizontal oil rig counts fell, -4 to 483
The Permian horizontal oil rig count was down, -3. The Permian has been losing rigs and a fair pace for the last two months.
The horizontal oil rig count fell at a pace of -3.25 / week on a 4 wma basis.
This number has been negative for 32 of the last 33 weeks
Frac spreads rose, +11 to 274. This is not sustainable.
DUC inventory has fallen below 15 weeks for the first time, 14.7 weeks today
In order to hold DUC counts constant, horizontal rigs would have to rise by 68 or frac spreads would have to fall 34.
The EIA issued the July DPR this week. Highlights:
Crude and condensate production from key shale plays rose in June to 9.23 mbpd, up 36 kbpd from May
Permian production was up 11 kbpd in June. Permian production growth has averaged 12 kbpd / month over the last three months
The Permian is really slowing down; growth is being sustained by the Bakken, with support from the other secondary plays
Compared to last year, total shale oil production is up 0.7 mbpd; the Permian is up 0.5 mbpd
Production is being sustained in part by the cannibalization of the DUC inventory