
Not unexpected, but rig count is down
As of this week, the rig count decline is nearing the decline of 2015. It fell about 10 rigs per day this week and in 2015-2016, it fell about 12-15 per day. New Mexico alone had 100 rigs on April 3 and the current total is 84; Texas’ District 8 went from 221 to 174 during the same period.
According to Enervus, cracks are appearing in Saudi Arabia and Russia’s willingness to continue their price war amid the new coronavirus outbreak that has slammed global markets and demand. U.S. President Donald Trump said he would meet with both parties to make an agreement that would significantly lower oil output, with cuts as large as 15 million barrels but there was no indication if that was per day, and no time frame was given.
Enervus also reported that the Russians and Saudis denied having spoken to one another, but later in the day Saudi Arabia called an urgent meeting of OPEC, including Russia, to seek a “fair agreement that will restore the desired balance to the oil markets,” the Saudi Press Agency said.
Much like in past agreements, Saudi Arabia’s participation is contingent upon other major producers making cuts themselves. The kingdom is currently producing around 12 million barrels of oil and could be willing to cut that to below 9 million bbl/d, according to a Saudi official.
Markets reacted positively to the news, with the WTI front-month contract settling 25% higher on April 16 at $25.32/bbl. WTI has kept these gains and currently trading at $27.38/bbl ahead of today's meeting.
Weekly
Trends
Recommended Reading
Baker Hughes, Woodside Partner to Scale Net Power Platform
2025-03-06 - Net Power’s platform uses natural gas to generate power while capturing nearly all CO2 emissions, Baker Hughes said in a news release.
Montana Renewables Closes $1.44B DOE Loan for Facility Expansion
2025-01-13 - The expansion project will lift annual production capacity to about 300 million gallons of sustainable aviation fuel (SAF) and 330 million gallons of combined SAF and renewable diesel.
Equigas, CO2Meter to Partner in Offering Gaslab Detection Devices
2025-02-14 - The devices are used in industrial operations to monitor gas leaks and maintain air quality and safety compliance.
ChampionX’s Aerial Optical Gas Imaging Platform Secures EPA Approval
2025-03-05 - ChampionX Corp.’s aerial optical gas imaging platform combines optical technology with a gimbal system to detect and locate methane leaks.
BP Monitoring Air Following Leak at Whiting Refinery
2024-12-27 - BP says the Midwest refinery is now operating normally.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.