Q3 2013 Review – US Shale Rig Count

As Baker Hughes has now released its final weekly report on rig count by basin in the US of the third quarter 2013, Evaluate Energy can provide a quick overview of the activity in the US shale plays over the period.

Source: Baker Hughes, Evaluate Energy Shale Database

Over the 8 US shale gas and liquids plays that Evaluate Energy collects Baker Hughes’ data for, it was the Eagle Ford that had the most active rigs, on average, during Q3 2013, making up around 35% of the combined quarterly average of 669 rigs over these plays. The Bakken in the Williston Basin was the second most active area with 27%. The Fayetteville gas play in Arkansas was the lease active, only contributing 2% of the active rigs to the eventual final average.

Overall, the quarter didn’t see any drastic changes in the combined oil & gas rig count for any play. The Eagle Ford maintained roughly the same high levels as the rest of 2013, the Bakken saw a fall to 183, continuing the trend of a slight fall (<10%) on the previous quarter that has happened since an apparent peak in the play’s average rig count in Q2 2012 of 217. The Niobrara saw the highest % climb on last quarter. The count for the Utica play in Ohio also continued to rise with a slight increase on last quarter, but overall, nothing particularly fascinating happened in terms of total count.

Source: Baker Hughes, Evaluate Energy Shale Database

In terms of oil and gas splits, it was the Utica play that was the most striking thing in Q3 2013, as the number of gas rigs being drilled has taken a much greater percentage of its combined average. Ever since the data set begins in Q1 2012 right up to last quarter, the average oil rig count in the play stayed around a steady 80% of the combined oil and gas average. This quarter however, the average dropped significantly down to 53%. There were stories earlier in the year that the Utica was in fact a far gassier play than originally predicted, and this is more than likely the reason for the change. In the monthly graph below, you can see the sudden shift – a fall in oil rigs is accompanied by an almost identical rise in gas rigs.

Source: Baker Hughes, Evaluate Energy Shale Database

This report was created using Baker Hughes’ average rig count data for US basins.

Evaluate Energy’s Shale Play database combines this rig count data with average well costs, land values, capex budgets, production, acreage holdings and drilling plans, to provide our clients with a great insight into the US Shale industry. Evaluate Energy provides clients with efficient data solutions for oil and gas company analysis, with 20+ years of financial/operating data, alongside a global assets, refineries and LNG terminal database, and an extensive M&A database.

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