Number of the Week: How Many Rigs Are Drilling for Oil? (WSJ 08.27.11)

This is a tad dated but very enlightening.  Because it cites Baker Hughes data, I'm just wondering whether that impressive graph remains accurate.  I'm not an insider, so I'll ask the GHS insiders.

 

http://blogs.wsj.com/economics/2011/08/27/number-of-the-week-how-ma...

 

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landownerPermalink Reply by essay on March 26, 2012 at 3:54

somebody sure is doing a good job, ain't he?


Oil & Gas ProPermalink Reply by Les Bamburg on March 26, 2012 at 9:21

Sesport, please see the attached graph.

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Oil & Gas ProPermalink Reply by Les Bamburg on March 26, 2012 at 14:08

Jay, several natural gas plays still provide excellent returns due to associated condensate and natural gas liquids.  Examples include the Eagle Ford Shale, Marcellus Shale, Granite Wash and Woodford/Cana Shale.  Some dry gas drilling is still economic due to the enhanced natural gas prices from hedging activities.  


Oil & Gas ProPermalink Reply by Les Bamburg on March 27, 2012 at 3:02

Jay, many of the rigs on the associated plays I mentioned are drilling for natural gas and classfied as gas rigs.

 

Hedging helps generate additional revenue and profits for the operator on wells being currently drilled.

 

The above two reasons simply show why current natural gas drilling can still be economic. 

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