Permian Basin rig count turns positive

[Sanguine]

It's coming up!

Posted: Friday, May 20, 2016 2:53 pm | Updated: 4:24 pm, Mon May 23, 2016.

By Trevor Hawes | thawes@mrt.com | 0 comments

It was a positive week for the Permian Basin rig count.

The nation’s most-active basin added three rigs for a total of 137. Its most-active county, Midland, added two to the tally for a total of 23 rigs, according to weekly rotary rig count data released Friday by Houston-based oilfield services company Baker Hughes.

The Permian saw several counties with renewed activity, including Cochran, Schleicher and Dawson. Lynn was the only county that ceased all activity.

For active areas in the Permian, there were 24 rigs in District 7C, up two; 89 in District 8, up one; eight in District 8A, unchanged; and 17 in New Mexico, unchanged. The Texas total was 120, up three.

Counties with double-digit rig counts were Midland, Loving (17), Reeves (17) and Upton (14).

The Permian had 233 rigs at this time last year.

Read more: Permian Basin rig count turns positive - MRT.com: Oil & Gas http://www.mrt.com/business/oil/article_8fd2006e-1ec4-11e6-9266-83a4d2a28318.html#ixzz49hWoBOIz
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[IsailedawayfromFR]

It's coming up!

Let's put 137 rigs into perspective. only 26% of the rigs are drilling vertical wells for maybe 18 days drill to drill. horizontals call it 28 days.  This is generous.

Means 137 rigs will drill a total of 0.26*137*365/18 + 0.74*137*365/28 = 2043 well drilled for one year.

There are at least 2,000 wells that have been drilled waiting to get completed.  See http://rudyenergy.com/duc-inventory/

Conclusion:  the total rig count may be about the same as the total amount of drilled yet uncompleted wells.  These are the wells that are the low-hanging fruit when prices rebound as a lot of the capital is already spent.

If anyone has better average drill numbers, I'd be glad to hear them.