The oil and natural gas rig count fell further last week, falling to just 918 or ~55% below its 2008 peak. This lower drilling activity seems to guarantee lower production within a few weeks that may bring balance to the fuel market. Another development was the price of gasoline passing (more…)
Posts Tagged ‘rig count’
Oil rig count falls, gas price passes $2.30
Saturday, May 16th, 2009US oil output finally following rig count down
Friday, May 1st, 2009
For months I’ve been talking about the potential of falling prices and rig counts to lower production. Well, in last week’s Energy Information Administration weekly petroleum report we finally saw a significant drop in crude oil output of (more…)
High US Oil Supply can Handle 2009 Mexico Oil Decline
Wednesday, April 1st, 2009
Today’s EIA petroleum report shows that storage of all major petroleum products are now above average. Even the prospect of lower oil supplies from Mexico don’t threaten our situation through the summer. Higher oil prices the last few years drove a domestic drilling boom that is finally paying off through a substantial increase in US oil production. The question is, how long will (more…)
Natural Gas Rig Count Continues Nosedive
Friday, March 27th, 2009Baker Hughes reported today that the number of active natural gas rigs is now half the peak level hit last September. That’s right – in just 6 months US companies have gone from actively trying to increase production (taking advantage of high US natural gas prices above $10 per MMBtu) to not even having the rigs to maintain (more…)
Natural Gas Recovering on Prospects of Lower Supply
Friday, March 20th, 2009The price of natural gas increased significantly the last couple of days. And it’s not just because of a weaker dollar. The US natural gas rig count fell another 3% last week to 857, more than 46% below their September peak. It is now at a number that threatens (more…)
Natural Gas Supplies Remain High, For Now
Friday, March 13th, 2009Yesterday’s EIA natural gas storage report showed ample supplies continuing through March. Inventories are 13.3% higher than average for this time of year and almost 20% higher than last year. But the rig count makes many analysts think prices will rise in the second half of the year unless economic collapse sends demand even further down. (more…)