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Rig Activity : Are Operators Starting to Respond to Oil Price WTI at $50 bbl

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This week we take a look at Rig Activity for week ending 11/30/2018.  Something is very noticeable this week. Looking at the rig count by operator chart, we see some big downward movements from some E&Ps that have driven the growth in rig count this year.    See below, Rig Count by Operator.

First lets take a broad look at how operators have been responding to WTI.

As you can see from the chart above, even with oil price declining operator continue to add rigs.    A closer look at the data shows some cracks.

Rig Activity By Play

Permian Basin - down -4 rigs
Delaware Basin is down by -6 (the Delaware Basin saw its biggest decline in recent months)
Midland Basin is up +2 (the Midland Basin gained two rigs)

STACK/SCOOP is down -2 to close this week at 112
Haynesville is down -1 to close at 60 rigs
Eagle Ford - unchanged at 95 rigs
Niobrara/DJ Basin - unchanged at 27 rigs

Granite Wash is up +1 this week to close at 21 rigs
Marcellus Shale is up +1 this week, to close at 54 rigs
Powder River - up +1, gaining one rig to end at 24

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Rig Activity By Operator

Something is very noticeable this week. For the first time this year, Chesapeake laid down -3 rigs,Occidental also dropped -2 rigs, Anadarko Petroleum dropped -2 rigs, Matador dropped -2 rigs.

It is too early to tell if these operators are beginning to respond to the low oil price of $50/bbl WTI.

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Canada

As you can see from the chart above, Canada is down slightly this week to -5, which mirrors exactly previous years activities.

Top Canada Drillers

Crescent Point  - 12 Rigs

Tourmaline  - 12 Rigs

Husky - 10 Rigs

CNRL - 7 Rigs

A few operators have already given 2019 Capital budget guidance, but that is based on $60WTI.  Go here to see some of the 2019 development plans.