Home >> Money & The Economy >> 2019 Rig Count Outlook Foreshadowed by Borrowing Base Cuts, Price Drops & Seasonal Dip in Rigs

2019 Rig Count Outlook Foreshadowed by Borrowing Base Cuts, Price Drops & Seasonal Dip in Rigs

Offshore oil rig

The total U.S. rig count for December 2018 was 1,147, down 36 (-3%) from November 2018, and up 117 (+11%) from December 2017, according to analysts at S&P Global Platts, the leading independent provider of information and benchmark prices for commodities and energy markets. This rig count includes U.S. onshore, U.S. inland waters, and U.S. offshore Gulf of Mexico drilling rigs.

  • December U.S. land rig count: 1,116, down 35 (-3%) from the previous month and up 127 (+13%) from December 2017
  • December U.S. inland waters and Gulf of Mexico rig count: 31, down 1 (-3%) from the previous month and down 10 (-24%) vs December 2017

“Rig downtime during the holiday and winter season is typical and expected. We saw a similar slowdown heading into last winter, as well,” said S&P Global Platts Senior Industry Analyst Trey Cowan. “What is interesting is with this new calendar year and fresh capital budgets for producers, we are hearing borrowing bases are about 25% less than the levels at the beginning of 2018. So with less borrowing combined with today’s depressed commodity prices these are indicators that could weaken the outlook in the upstream rig counts and drilling activity for early 2019.”

S&P Global Platts U.S. Rig Counts

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Dec  
2018

Nov  
2018

Month 
over
Month 
Change


Change

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Dec  
2017

Variance
Year
over
Year
(YOY)

YOY % 
Variance

Colorado

38

36

2

6%

38

0

0%

Louisiana

43

44

-1

-2%

51

-8

-16%

New Mexico

97

95

2

2%

74

23

31%

North Dakota

61

58

3

5%

48

13

27%

Oklahoma

151

155

-4

-3%

125

26

21%

Texas

537

557

-20

-4%

489

48

10%

Rest of U.S. Land

189

206

-17

-8%

164

25

15%

U.S. Land Subtotal

1,116

1,151

-35

-3%

989

127

13%

U.S. Inland Waters

3

4

-1

-25%

6

-3

-50%

U.S. Gulf of Mexico

28

28

0

0%

35

-7

-20%

U.S. Inland and Gulf of Mexico

31

32

-1

-3%

41

-10

-24%

Total U.S. Rig Count

1,147

1,183

-36

-3%

1,030

117

11%

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About R. Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News. His posts may contain opinions that are his own and are not necessarily shared by Anomalous Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and
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