U.S. Drilling Rigs Swing To Annual Loss For First Time In Years

[Hoodat]

U.S. Drilling Rigs Swing To Annual Loss For First Time In Years

Julianne Geiger  |  May 19, 2023, 12:25 PM CDT

The total number of total active drilling rigs in the United States fell by 11 this week, according to new data from Baker Hughes published Friday, after falling by 17 last week.

The total rig count fell to 720 this week—8 rigs below this time last year. It is the first year-over-year loss in the number of active drilling rigs in the United States since April 2021. The current count is 355 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic.
The decline in the number of rigs was entirely attributed to oil rigs, which fell by 11 this week to 575. Gas rigs stayed the same at 141. Miscellaneous rigs stayed the same at 4.

The rig count in the Permian Basin fell by 4, while the rig count in the Eagle Ford fell by 3.

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells—a more frugal use of finances than drilling new wells, fell by 10 for the week ending May 12, to 272. This is 11 fewer finishing crews than a month ago, and 12 fewer than a year ago.

Crude oil production levels in the United States fell in the week ending May 12, from 12.3 million bpd to 12.2 million bpd  .  .  .

https://oilprice.com/Energy/Crude-Oil/US-Drilling-Rigs-Swing-To-Annual-Loss-For-First-Time-In-Years.html

[Smokin Joe]

The oil company I have been doing work for has cut their rig fleet in this basin by half, moving CAPEX to the Permian and Powder River Basins. If it were not for the manipulations of the ESG crowd, Biden & Co, and the refusal to re-fill the SPR instead of continuing to sell from it, oil would be higher and activity would pick up. Not seeing it, yet.

[Weird Tolkienish Figure]

The oil company I have been doing work for has cut their rig fleet in this basin by half, moving CAPEX to the Permian and Powder River Basins. If it were not for the manipulations of the ESG crowd, Biden & Co, and the refusal to re-fill the SPR instead of continuing to sell from it, oil would be higher and activity would pick up. Not seeing it, yet.

How do we get around the ESG crowd? This will destroy the economy if not fixed.

[Smokin Joe]

How do we get around the ESG crowd? This will destroy the economy if not fixed.

IMHO, that is the intent of the ESG crowd.

Boycott them as much as possible.
Let them go broke (like SVB).
Oppose bailouts.

(We aren't bailing out stupid acts of small business, why large ones).

Some companies bought back their stock, making them less able to be manipulated, and are pulling their CAPEX from revenues rather than relying on financing. Get/stay out of debt.

[Smokin Joe]

Part of the problem is no one wants to work.  The other problem is Biden is trying to kill the oil business, which makes it harder to find investors.  Not to mention, service companies seem to be drying up as well.

There are still workover jobs, production jobs, plenty of openings for CDL drivers, and the like. Yes, the hours are long, the work can be demanding, and here, the conditions even more so. But I have been out there since '79 and only regret not having more saved and a side hustle for the slow times. Live and learn.

But somewhere, people got the idea they could make money from home without getting dirty, and often that isn't the case around here. There are some hard workers, movers and shakers, in the younger generation, but they seem fewer and farther in between.

Another factor might be having to pass the drug screening, and people are insanely loyal to their weed.

[libertybele]

There are still workover jobs, production jobs, plenty of openings for CDL drivers, and the like. Yes, the hours are long, the work can be demanding, and here, the conditions even more so. But I have been out there since '79 and only regret not having more saved and a side hustle for the slow times. Live and learn.

But somewhere, people got the idea they could make money from home without getting dirty, and often that isn't the case around here. There are some hard workers, movers and shakers, in the younger generation, but they seem fewer and farther in between.

Another factor might be having to pass the drug screening, and people are insanely loyal to their weed.

That's a little bit of good news.