2019 Rig Count Outlook Foreshadowed by Borrowing Base Cuts, Price Drops & Seasonal Dip in Rigs
HOUSTON, Jan. 4, 2019 /PRNewswire/ -- The total U.S. rig count for December 2018 was 1,147, down 36 (-3%) from November 2018, and up 117 (+11%) from December 2017, according to analysts at S&P Global Platts, the leading independent provider of information and benchmark prices for commodities and energy markets. This rig count includes U.S. onshore, U.S. inland waters, and U.S. offshore Gulf of Mexico drilling rigs.
- December U.S. land rig count: 1,116, down 35 (-3%) from the previous month and up 127 (+13%) from December 2017
- December U.S. inland waters and Gulf of Mexico rig count: 31, down 1 (-3%) from the previous month and down 10 (-24%) vs December 2017
"Rig down time during the holiday and winter season is typical and expected. We saw a similar slowdown heading into last winter, as well," said S&P Global Platts Senior Industry Analyst Trey Cowan. "What is interesting is with this new calendar year and fresh capital budgets for producers, we are hearing borrowing bases are about 25% less than the levels at the beginning of 2018. So with less borrowing combined with today's depressed commodity prices these are indicators that could weaken the outlook in the upstream rig counts and drilling activity for early 2019."
S&P Global Platts U.S. Rig Counts |
||||||||
Dec |
Nov |
Month |
% |
Dec |
Variance |
YOY % |
||
Colorado |
38 |
36 |
2 |
6% |
38 |
0 |
0% |
|
Louisiana |
43 |
44 |
-1 |
-2% |
51 |
-8 |
-16% |
|
New Mexico |
97 |
95 |
2 |
2% |
74 |
23 |
31% |
|
North Dakota |
61 |
58 |
3 |
5% |
48 |
13 |
27% |
|
Oklahoma |
151 |
155 |
-4 |
-3% |
125 |
26 |
21% |
|
Texas |
537 |
557 |
-20 |
-4% |
489 |
48 |
10% |
|
Rest of U.S. Land |
189 |
206 |
-17 |
-8% |
164 |
25 |
15% |
|
U.S. Land Subtotal |
1,116 |
1,151 |
-35 |
-3% |
989 |
127 |
13% |
|
U.S. Inland Waters |
3 |
4 |
-1 |
-25% |
6 |
-3 |
-50% |
|
U.S. Gulf of Mexico |
28 |
28 |
0 |
0% |
35 |
-7 |
-20% |
|
U.S. Inland and Gulf of Mexico |
31 |
32 |
-1 |
-3% |
41 |
-10 |
-24% |
|
Total U.S. Rig Count |
1,147 |
1,183 |
-36 |
-3% |
1,030 |
117 |
11% |
|
CONTACT
Kathleen Tanzy, + 1 917 331 4607, [email protected]
About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.
S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com.
SOURCE S&P Global Platts
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