Nov 5, 2018   SOURCE: PR NewsWire

Shallow Vertical Wells Get Lift in October; Overall U.S. Rig Count Remains Flat Versus September

HOUSTON, Nov. 5, 2018 /PRNewswire/ -- S&P Global Platts Analytics, today announced the total U.S. rig count for October 2018 was 1,174, down 1 (0%) from September 2018, and up 126 (+12%) from October 2017. This rig count includes U.S. onshore, U.S. inland waters, and U.S. offshore Gulf of Mexico drilling rigs.

    --  October U.S. land rig count: 1,144, down 2 (0%) from the previous month
        and up 124 (+12%) from October 2017
    --  October U.S. inland waters and Gulf of Mexico rig count: , up 1 (+3%)
        from the previous month and up 2 (+7%) from October 2017

"While month-over-month rig count performance is basically flat, it's worth taking a look under the hood, where we see an increase in rigs for drilling conventional, shallow natural gas wells, evidence that smaller-scale natural gas producers were taking advantage of the visibly stronger natural gas prices," said S&P Global Platts Analytics Senior Industry Analyst Trey Cowan.

Natural gas prices, according to the spot, physical market price of Henry Hub, as assessed by S&P Global Platts, showed a rise of 8% during October.

"Colorado could hold the most volatility in the months ahead," said Cowan. "If Proposition 112* is approved at the U.S. November 6 Midterm Elections, we could see a rush to get wells drilled before permits expire and then a precipitous fall in drilling for the state."



       
              S&P Global Platts U.S. Rig Counts




                                                     
     Oct     
     Sep      
          Month    
          %     
     Oct       
        Variance             YOY %
                                                          2018       2018      over         Change           2017       Year         Variance
                                                                             Month                                   over
                                                                            Change                                   Year
                                                                                                                     (YOY)




       Colorado                                            35         37              -2          -5%          40                -5               -13%



       Louisiana                                           53         49               4           8%          51                 2                 4%



       New Mexico                                          89         98              -9          -9%          67                22                33%



       North Dakota                                        60         60               0           0%          52                 8                15%



       Oklahoma                                           157        155               2           1%         134                23                17%



       Texas                                              561        563              -2           0%         489                72                15%



       Rest of U.S. Land                                  189        184               5           3%         187                 2                 1%

    ---


       
              U.S. Land Subtotal                    1,144      1,146              -2           0%       1,020               124                12%

    ---


       U.S. Inland Waters                                   3          2               1          50%           6                -3               -50%



       U.S. Gulf of Mexico                                 27         27               0           0%          22                 5                23%



       
              U.S. Inland and Gulf of Mexico           30         29               1           3%          28                 2                 7%



       
              Total U.S. Rig Count                  1,174      1,175              -1           0%       1,048               126                12%

    ===

*Colorado's Proposition 112 would require that any new oil and gas development be located at least 2500 feet from any structure intended for human occupancy.

CONTACT
Kathleen Tanzy, + 1 917 331 4607, kathleen.tanzy@spglobal.com

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SOURCE S&P Global Platts