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Rotary Rigs in Operation
Rig count reached the highest monthly level since January 2000 in November 2011 with 2017 rigs operating. Drilling rigs employed in crude oil service (896) exceeded those employed in natural gas E&P (885) in April 2011. This marks the first time that the oil rig count exceeded the gas rig count since November 1993. Rising oil prices, stagnant natural gas prices hovering around $4/MMBtu since last Spring, and concerns about shale fracking have caused the shift.
Oil rigs in operation show weak relationship to oil prices as seen in the following graph. The low R2 of 0.1588 indicates a poor correlation.
In contrast, 81% of the variation in gas rigs in operation is explained by changes in wellhead gas prices.
We plan to do more work in this area.
Sources: Energy Information Administration Copyright
2000
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See