Tag Archives: rig count

Oil rig count falls, gas price passes $2.30

natgasrigThe oil and natural gas rig count fell further last week, falling to just 918 or ~55% below its 2008 peak. This lower drilling activity seems to guarantee lower production within a few weeks that may bring balance to the fuel market. Another development was the price of gasoline passing Continue reading

High US Oil Supply can Handle 2009 Mexico Oil Decline

oiltanksToday’s EIA petroleum report shows that storage of all major petroleum products are now above average. Even the prospect of lower oil supplies from Mexico don’t threaten our situation through the summer. Higher oil prices the last few years drove a domestic drilling boom that is finally paying off through a substantial increase in US oil production. The question is, how long will Continue reading

Natural Gas Rig Count Continues Nosedive

natgasrigBaker Hughes reported today that the number of active natural gas rigs is now half the peak level hit last September. That’s right – in just 6 months US companies have gone from actively trying to increase production (taking advantage of high US natural gas prices above $10 per MMBtu) to not even having the rigs to maintain Continue reading

Natural Gas Supplies Remain High, For Now

natgasrigYesterday’s EIA natural gas storage report showed ample supplies continuing through March. Inventories are 13.3% higher than average for this time of year and almost 20% higher than last year. But the rig count makes many analysts think prices will rise in the second half of the year unless economic collapse sends demand even further down. Continue reading