Masters Of War

Come you masters of war You that build all the guns You that build the death planes You that build all the bombs You that hide behind walls You that hide behind desks I just want you to know I can see through your masks. You that never done nothin' But build to destroy You play with my world Like it's your little toy You put a gun in my hand And you hide from my eyes And you turn and run farther When the fast bullets fly. Like Judas of old You lie and deceive A world war can be won You want me to believe But I see through your eyes And I see through your brain Like I see through the water That runs down my drain. You fasten all the triggers For the others to fire Then you set back and watch When the death count gets higher You hide in your mansion' As young people's blood Flows out of their bodies And is buried in the mud. You've thrown the worst fear That can ever be hurled Fear to bring children Into the world For threatening my baby Unborn and unnamed You ain't worth the blood That runs in your veins. How much do I know To talk out of turn You might say that I'm young You might say I'm unlearned But there's one thing I know Though I'm younger than you That even Jesus would never Forgive what you do. Let me ask you one question Is your money that good Will it buy you forgiveness Do you think that it could I think you will find When your death takes its toll All the money you made Will never buy back your soul. And I hope that you die And your death'll come soon I will follow your casket In the pale afternoon And I'll watch while you're lowered Down to your deathbed And I'll stand over your grave 'Til I'm sure that you're dead.------- Bob Dylan 1963

Monday, May 18, 2020

global oil surplus at a record 18.2 million barrels per day in April, 22.3% over demand; horizontal drilling at Aug 2006 low

oil prices rose for a third week in a row this past week, after the Saudis announced additional production cuts and the EIA reported the first withdrawal from US crude supplies in sixteen weeks....after rising 25% to $24.74 a barrel as US oil producers curtailed production and states began to loosen restrictions on shopping & travel last week, the contract price of US light sweet crude for June delivery opened lower on Monday and slid to a 60 cent ​loss at $24.14 a barrel, as concern over a persistent oil supply glut and fear of a second wave of coronavirus cases combined to more than offset the bullish impact of supply cuts at some of the world's top producers...oil prices ​then ​turned positive on Tuesday and jumped more than $2 a barrel after Saudi Arabia said it would cut production by an additional 1 million barrels per day after June 1st, and held on to most of those gains to close $1.64 higher at a five week high of $25.78 a barrel, bolstered by the hope that reopening economies would help drain the crude oil glut...but oil prices opened lower again on Wednesday a fell to $24.79 a barrel after an overnight industry report indicated a larger than expected addition to US crude supplies and held on to half ​of ​that loss to close 49 cents lower at $25.29 a barrel, after Fed Chairman Powell warned of an "extended period" of weak economic growth, even ​as EIA data showed an unexpected weekly decline in crude supplies both nationally and at the Cushing Oklahoma storage hub....oil supply reports, including the ​reported ​dip in U.S. crude stockpiles, pushed prices higher on Thursday as they rallied to close $2.27 or 9% higher at $27.56 per barrel after the International Energy Agency forecast lower global stockpiles in the second half of 2020...U.S. crude prices then jumped another 9% on Friday to their highest level since March, as countries around the world eased​ the​ travel restrictions they had imposed to curb the spread of the coronavirus, and closed up $1.87 at $29.43 per barrel, 49 cents off their high for the day...US oil prices thus logged a 19% gain for the week​ and neared a two-month high as China’s industrial output rose for the first time since the coronavirus pandemic began...

natural gas prices, on the other hand, fell for a third straight week as milder weather and virus related ​falling demand continued to take its toll...after falling 3.5% to end​ ​last week at $1.823 per mmBTU on ongoing coronavirus demand destruction and rising supplies, the contract price of natural gas for June delivery opened higher and rose to a 6.7 cent gain on Monday before falling back to close little changed at $1.826 per mmBTU, as forecasts for milder weather and less demand over the next two weeks offset a continued slowdown in output as companies slashed spending on new wells and shut in their old ones...natural gas prices then fell almost 6% to a three-week low of $1.720 per mmBTU on Tuesday as the weather turned milder and businesses remain closed, both ​meaning lower demand...tanking demand for LNG drove​ gas​ prices lower again on Wednesday, ​as they fell 10.4 cents to a four-week low of $1.616 per mmBTU, despite expectations that ​oil ​associated gas output would slow as a collapse in oil prices prompted firms to shut oil wells and slash spending on new drilling...a lower than expected addition to underground natural gas storage then fueled a brief rally on Thursday, as the June gas contract climbed 6.5 cents to settle at $1.681 per mmBTU, but the contract price gave back 3.5 cents of that gain on Friday, as forecasts for milder weather implied larger additions to storage in the weeks going forward...June natural gas thus ended the week priced at $1.646​ ​per mmBTU, 9.7% lower than the previous Friday's close...

the natural gas storage report from the EIA for the week ending May 8th indicated that the quantity of natural gas held in underground storage in the US rose by 103 billion cubic feet to 2,422 billion cubic feet by the end of the week, which left our gas supplies 799 billion cubic feet, or 49.2% higher than the 1,623 billion cubic feet that was in storage on May 8th of last year, and 413 billion cubic feet, or 20.6% above the five-year average of 2,009 billion cubic feet of natural gas that has been in storage as of the 8th of May in recent years....the 103 billion cubic feet that were added to US natural gas storage this week was lower than the consensus forecast for a 110 billion cubic feet increase from a survey of analysts by S&P Global Platts, but was well above the 75 billion cubic feet of natural gas that have been added to natural gas storage during the same week over the past 5 years, and also above the 100 billion cubic feet addition of natural gas to storage during the corresponding week of 2019... 

The Latest US Oil Supply and Disposition Data from the EIA

US oil data from the US Energy Information Administration for the week ending May 8th indicated that because of a large jump in the amount of oil that went missing after it was either imported or reportedly produced, our commercial supplies of stored crude oil fell for the first time in 16 weeks and for the ninth time in the past thirty-five weeks...our imports of crude oil fell by an average of 321,000 barrels per day to an average of 5,391,000 barrels per day, after rising by an average of 410,000 barrels per day during the prior week, while our exports of crude oil fell by an average of 21,000 barrels per day to an average of 3,525,000 barrels per day during the week, which meant that our effective trade in oil worked out to a net import average of 1,866,000 barrels of per day during the week ending May 8th, 300,000 fewer barrels per day than the net of our imports minus our exports during the prior week...over the same period, the production of crude oil from US wells fell by 300,000 barrels per day to 11,600,000 barrels per day, and hence our daily supply of oil from the net of our trade in oil and from well production totaled an average of 13,466,000 barrels per day during this reporting week..

meanwhile, US oil refineries reported they were processing 12,383,000 barrels of crude per day during the week ending May 8th, 594,000 fewer barrels per day than the amount of oil they used during the prior week, while over the same period the EIA's surveys indicated that 170,000 barrels of oil per day were being added to the supplies of oil stored in the US....so based on that data, this week's crude oil figures from the EIA appear to indicate that our total working supply of oil from net imports and from oilfield production was 914,000 barrels per day more than what what was added to storage plus what our oil refineries reported they used during the week....to account for that disparity between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a (-914,000) barrel per day figure onto line 13 of the weekly U.S. Petroleum Balance Sheet to make the reported data for the daily supply of oil and the consumption of it balance out, essentially a fudge factor that they label in their footnotes as "unaccounted for crude oil", thus suggesting an error or errors of that magnitude in the oil supply & demand figures we have just transcribed...however, since the media treats these figures as gospel and since the​se numbers often drive oil pricing and hence decisions to drill for oil, we'll continue to report them, just as they're watched & believed as accurate by most everyone in the industry...(for more on how this weekly oil data is gathered, and the possible reasons for that "unaccounted for" oil, see this EIA explainer)....   

further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports fell to an average of 5,336,000 barrels per day last week, now 26.1% less than the 7,217,000 barrel per day average that we were importing over the same four-week period last year....the 170,000 barrel per day addition to our total crude inventories included 276,000 barrels per day that were added to our Strategic Petroleum Reserve, which was partly offset by 106,000 barrels per day that were being withdrawn from our commercially available stocks of crude oil....this week's crude oil production was reported to be down by 300,000 barrels per day to 11,600,000 barrels per day because the rounded estimate of the output from wells in the lower 48 states was down by 300,000 barrels per day to 11,200,000 barrels per day, while a 5,000 barrel per day decrease in Alaska's oil production to 438,000 barrels per day had no impact on the rounded national total....last year's US crude oil production for the week ending May 10th was rounded to 12,100,000 barrels per day, so this reporting week's rounded oil production figure was 4.1% below that of a year ago, yet still 37.6% more than the interim low of 8,428,000 barrels per day that US oil production fell to during the last week of June of 2016...    

meanwhile, US oil refineries were operating at 67.9% of their capacity in using 12,383,000 barrels of crude per day during the week ending May 8th, down from 70.5% of capacity during the prior week, and among the lowest refinery utilization rates of the last dozen years...hence, the 12,383,000 barrels per day of oil that were refined this week were 25.7% fewer barrels than the 16,676,000 barrels of crude that were being processed daily during the week ending May 10th, 2019, when US refineries were operating at a seasonally typical 90.5% of capacity....

even with the decrease in the amount of oil being refined, gasoline output from our refineries was quite a bit higher, increasing by 792,000 barrels per day to 7,497,000 barrels per day during the week ending May 8th, after our refineries' gasoline output had decreased by 30,000 barrels per day over the prior week....but since the recent  gasoline output increases have been coming off a 22 year low in gasoline production, our gasoline output this week was still 24.4% lower than the 9,912,000 barrels of gasoline that were being produced daily over the same week of last year....on the other hand, our refineries' production of distillate fuels (diesel fuel and heat oil) decreased by 190,000 barrels per day to 4,892,000 barrels per day, after our distillates output had increased by 100,000 barrels per day over the prior week...after this week's decrease in distillates output, our distillates' production for the week was 7.1% less than the 5,264,000 barrels of distillates per day that were being produced during the week ending May 10th, 2019....

even with the increase in our gasoline production, our supply of gasoline in storage at the end of the week decreased for the 3rd time in 6 weeks and for the 11th time in 15 weeks, falling by 3,513,000 barrels to 252,894,000 barrels during the week ending May 8th, after our gasoline supplies had decreased by 3,158,000 barrels over the prior week...our gasoline supplies decreased again this week because the amount of gasoline supplied to US markets increased by 734,000 barrels per day to 7,398,000 barrels per day, even as our exports of gasoline fell by 358,000 barrels per day to a 100 month low of 174,000 barrels per day while our imports of gasoline rose by 118,000 barrels per day to 486,000 barrels per day....and even after this week's inventory decrease, our gasoline supplies were still 12.4% higher than last May 10th's gasoline inventories of 225,024,000 barrels, and roughly 9% above the five year average of our gasoline supplies for this time of the year...  

with the increase in our distillates production, our supplies of distillate fuels increased for the sixth time in 17 weeks and for the 11th time in 32 weeks, rising by 3,511,000 barrels to 155,001,000 barrels during the week ending May 8th, after our distillates supplies had increased by 9,515,000 barrels over the prior week....our distillates supplies rose by less this week because the amount of distillates supplied to US markets, an indicator of our domestic demand, jumped by 689,000 barrels per day to 3,818,000 barrels per day, while our exports of distillates fell by 163,000 barrels per day to 766,000 barrels per day and our imports of distillates fell by 143,000 barrels per day to 193,000 barrels per day....after this week's inventory increase, our distillate supplies at the end of the week were 23.4% above the 125,647,000 barrels of distillates that we had stored on May 10th, 2019, and about 16% above the five year average of distillates stocks for this time of the year...

finally, with lower oil imports and ​the drop in our crude production, our commercial supplies of crude oil in storage fell for the first time in sixteen weeks and for the nineteenth time in the past 52 weeks, decreasing by 745,000 barrels, from 532,221,000 barrels on May 1st to 531,476,000 barrels on May 8th...but ​since that was ​after 15 straight increases and three record increases over past ​6 weeks, our crude oil inventories are still 11% above the five-year average of crude oil supplies for this time of year, and almost 49% above the prior 5 year (2010 - 2014) average of crude oil stocks as of the 8th of May, with the disparity between those comparisons arising because it wasn't until early 2015 that our oil inventories first rose above 400 million barrels, and continued rising from there....since our crude oil inventories have generally been rising over the past year and a half, except for during this past summer, after generally falling until then through most of the prior year and a half, our crude oil supplies as of May 8th were 12.6% above the 472,035,000 barrels of oil we had in commercial storage on May 10th of 2019, 22.9% above the 432,354,000 barrels of oil that we had in storage on May 11th of 2018, and 2.1% above the 520,772,000 barrels of oil we had in commercial storage on May 12th of 2017... 

OPEC's Monthly Oil Market Report

Wednesday of this past week saw the release of OPEC's May Oil Market Report, which covers OPEC & global oil data for April, and hence it gives us a picture of the global oil supply & demand situation during the period when the Saudis and their allies were engaged in an oil price war against the Russians and US shale, but before before the mid-April agreement to cut production by 9.7 million barrels a day during May & June kicked in....​but ​before we start, we should caution that estimating oil demand while most countries on the planet are engaged in varying degrees of lockdown is pretty much a crapshoot, and hence the numbers we'll be reporting this month should be considered ​as ​having a much larger margin of error than we'd normally expect from this report..

the first table from this monthly report that we'll ​review is from the page numbered 46 of that report (pdf page 56), and it shows oil production in thousands of barrels per day for each of the current OPEC members over the recent years, quarters and months, as the column headings indicate...for all their official production measurements, OPEC uses an average of estimates from six "secondary sources", namely the International Energy Agency (IEA), the oil-pricing agencies Platts and Argus, ‎the U.S. Energy Information Administration (EIA), the oil consultancy Cambridge Energy Research Associates (CERA) and the industry newsletter Petroleum Intelligence Weekly, as a means of impartially adjudicating whether their output quotas and production cuts are being met, to thus avert any potential disputes that could arise if each member reported their own figures... 

April 2020 OPEC crude output via secondary sources

as we can see from the above table of oil production data, OPEC's oil output jumped by 1,798,000 barrels per day to 30,412,000 barrels per day in April, from their revised March production total of 28,614,000 barrels per day...however that March output figure was originally reported as 28,612,000 barrels per day, which means that OPEC's March production was revised 2,000 barrels per day higher with this report, and hence April's production was, in effect, a 1,800,000 barrel per day increase from the previously reported OPEC production figures (for your reference, here is the table of the official March OPEC output figures as reported a month ago, before this month's revisions)...

from the above table, we can also see that increases of 1,553,000 barrels per day from the Saudis, 332,000 barrels per day from the Emirates, and 259,000 barrels per day from Kuwait were the reason for the output increase in April, as every other major OPEC producer continued to adhere to the output allocations that were originally determined for each OPEC member after their December 7th, 2018 meeting, when OPEC agreed to cut 800,000 barrels per day as part of a 1.2 million barrel per day cut agreed to with Russia and other oil producers and the additional production cuts of 500,000 barrels per day through to March 2020 that were announced at their December 6th, 2019 meeting..

the next graphic from the report that we'll include shows us both OPEC and world oil production monthly on the same graph, over the period from May 2018 to April 2020, and it comes from page 47 (pdf page 57) of the May OPEC Monthly Oil Market Report....on this graph, the cerulean blue bars represent OPEC oil production in millions of barrels per day as shown on the left scale, while the purple graph represents global oil production in millions of barrels per day, with the metrics for global output shown on the right scale... 

April 2020 OPEC report global oil supply

even with the 1,798,000 barrel per day jump in OPEC's production from what they produced a month ago, OPEC's preliminary estimate indicates that total global oil production decreased by a rounded 0.18 million barrels per day to average 99.46 million barrels per day in April, a reported decrease which apparently came after April 's total global output figure was revised lower by 220,000 barrels per day from the 99.86 million barrels per day of global oil output that was reported a month ago, as non-OPEC oil production fell by a rounded 1,980,000 barrels per day in April after that revision, with lower oil production from the US, Canada, Ecuador, Brazil and Kazakhstan the major reasons for the non-OPEC output decrease in April...​even ​with the decrease in April's global output, the 99.46 million barrels of oil per day produced globally in April were ​still ​1.24 million barrels per day, or 1.3% greater than the revised 98.22 million barrels of oil per day that were being produced globally in April a year ago, the 4th month of OPECs first round of production cuts (see the May 2019 OPEC report (online pdf) for the originally reported April 2019 details)...with this month's big increase in OPEC's output, their April oil production of 30,412,000 barrels per day rose to 30.6% of what was produced globally during the month, up from the 28.7% share OPEC contributed in March, and the 28.1% global share they had in February...OPEC's April 2019 production, which included 528,000 barrels per day from former member Ecuador, was reported at 30,031,000 barrels per day, which means that the 13 OPEC members who were part of OPEC last year produced 909,000 more barrels per day of oil in April than what they produced a year ago, when they accounted for 30.4% of global output, with a 1,740,000 barrel per day increase in output from Saudi Arabia, a 779,000 barrel per day increase in the output from the Emirates, and a 435,000 barrel per day increase in the output from Kuwait from that time more than offsetting a 1,094,000 barrel per day drop in the output from Libya and a 585,000 barrel per day drop in the output from Iran​,​ to ​thus ​result in the year over year increase...

with the big jump in OPEC's output that we've seen in this report, there was a record surplus in the amount of oil being produced globally during the month, as this next table from the OPEC report will show us...    

April 2020 OPEC report global oil demand

the above table came from page 25 of the May OPEC Monthly Oil Market Report (pdf page 35), and it shows regional and total oil demand estimates in millions of barrels per day for 2019 in the first column, and OPEC's estimate of oil demand by region and globally quarterly over 2020 over the rest of the table...on the "Total world" line in the third column, we've circled in blue the figure that's relevant for April, which is their estimate of global oil demand during the second quarter of 2020...

OPEC is estimating that during the 2nd quarter of this year, all oil consuming regions of the globe will be using an average of 81.30 million barrels of oil per day, which is a 5.40 million barrel per day downward revision from the 86.70 million barrels of oil per day they were estimating for the 2nd quarter a month ago (circled in green), largely reflecting coronavirus related demand destruction....meanwhile, as OPEC showed us in the oil supply section of this report and the summary supply graph above, OPEC and the rest of the world's oil producers were ​still ​producing 99.46 million barrels per day during April, which would imply that there was a surplus of around 18,160,000 barrels per day in global oil production in April​, 22.3% greater than​ the demand estimated for the month... 

in addition to the April surplus, the downward revision of 180,000 barrels per day to March's global output that's implied in this report, combined with the 530,000 barrels per day downward revision to 1st quarter demand that we've circled in green means that the 17,718,000 barrels per day global oil output surplus we had figured for March would now be revised to a surplus of 18,068,000 barrels per day....the 530,000 barrels per day downward revision to 1st quarter demand means we'd also have to revise our February surplus oil production estimate from 1,660,000 barrels per day to 2,190,000 barrels per day, and revise our January surplus oil production estimate from 690,000 barrels per day to 1,220,000 barrels per day...

as you'll recall, OPEC, the Russians, and other oil producers have recently agreed to cut their production by 9.7 million barrels a day during May & June, in an agreement which would produce the specific reduction​ in output​ shown in the table below...a month ago, we looked at those cuts on a country by country basis, and found that because ​OPEC is using October 2018 as a basis for their cuts, the actual reduction from February's already depressed production level was just 5.8%, not the 23% cuts advertised...we then went out on a limb and estimated that 2nd quarter global production would still be 6,160,000 barrels per day greater than demand even after these much ballyhooed production cuts...without any recomputation of the figures that went into that estimate, the 5.40 million barrel per day downward revision to 2nd quarter demand ​shown above ​would now mean that our revised estimate for the second quarter's global oil surplus would be at 11,560,000 barrels per day...

April 13th 2020 OPEC   emergency cuts

Note: the above table was taken from an article at Zero Hedge, and it shows the oil production baseline in thousands of barrel per day off of which each of the oil producers will cut from in the first column, a number which is based on each of the producer's October 2018 output, ie., a date before the past year's and past quarter's output cuts took effect; the second column shows how much each participant will cut in thousands of barrel per day, which is 23% of the October 2018 baseline for all participants except for Mexico, while the last column shows the production level each participant has agreed to after that 23% cut...

This Week's Rig Count

the US rig count fell for the 10th week in a row during the week ending May 15th, and is now down by 57.3% over that ten week period....Baker Hughes reported that the total count of rotary rigs running in the US decreased by 35 rigs to 339 rigs this past week, which was the fewest rigs deployed in Baker Hughes records going back to 1940, down by 648 rigs from the 987 rigs that were in use as of the May 17th report of 2019, and 1,590 fewer rigs than the shale era high of 1,929 drilling rigs that were deployed on November 21st of 2014, the week before OPEC began to flood the global oil market in an attempt to put US shale out of business....

the number of rigs drilling for oil decreased by 34 rigs to 258 oil rigs this week, after falling by 33 oil rigs the prior week, leaving oil rig activity at its lowest since July 17, 2009, which was also 544 fewer oil rigs than were running a year ago, and less than a sixth of the recent high of 1609 rigs that were drilling for oil on October 10th, 2014....at the same time, the number of drilling rigs targeting natural gas bearing formations decreased by 1 to 79 natural gas rigs, the fewest natural gas rigs active in 80 years of Baker Hughes records, down by 106 natural gas rigs from the 185 natural gas rigs that were drilling a year ago, and less than a twentieth of modern era high of 1,606 rigs targeting natural gas that were deployed on September 7th, 2008...in addition to those rigs drilling for oil & gas, two rigs classified as 'miscellaneous' continued to drill this week; one on the big island of Hawaii, and one in Lake County, California... a year ago, there were no such "miscellaneous" rigs deployed..

the Gulf of Mexico rig count was down by three rig to 12 rigs this week, the least Gulf rig activity since September 2nd 2016, with all of those Gulf rigs drilling for oil in Louisiana's offshore waters...that's ten fewer rigs than the rig count in the Gulf a year ago, when 20 rigs were drilling offshore from Louisiana and two rigs were operating in Texas waters...there are no rigs operating offshore elsewhere at this time, nor were there a year ago, so the Gulf rig count is equivalent to the national rig count, just as it has been since the onset of ​this past ​winter...

the count of active horizontal drilling rigs decreased by 31 rigs to 307 horizontal rigs this week, which was the fewest horizontal rigs active since August 18, 2006, and hence is 3 months short of a 14 year low for horizontal drilling...it was also 559 fewer horizontal rigs than the 866 horizontal rigs that were in use in the US on May 17th of last year, and less than a quarter of the record of 1372 horizontal rigs that were deployed on November 21st of 2014...at the same time, the directional rig count decreased by 5 to leave 22 directional rigs running this week, and those were down by 51 from the 73 directional rigs​ ​that were operating during the same week of last year....on the other hand, the vertical rig count was up by 1 to 10 vertical rigs this week, but those were still down by 38 from the 48 vertical rigs that were in use on May 17th of 2019....

the details on this week's changes in drilling activity by state and by major shale basin are shown in our screenshot below of that part of the rig count summary pdf from Baker Hughes that gives us those changes...the first table below shows weekly and year over year rig count changes for the major oil & gas producing states, and the table below that shows the weekly and year over year rig count changes for the major US geological oil and gas basins...in both tables, the first column shows the active rig count as of May 15th, the second column shows the change in the number of working rigs between last week's count (May 8th) and this week's (May 15th) count, the third column shows last week's May 8th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting week a year ago, which in this week’s case was the 17th of May, 2019...    

May 15 2020 rig count summary

as you can see, this weeks basin totals show a decrease of 31 rigs, equal to the number of horizontal rigs removed nationally this week, which strongly suggests that all of this week's horizontal drilling changes took place in the major shale basins...checking the rig losses in the Texas part of Permian basin, we find that 15 rigs were pulled out of Texas Oil District 8, or the core Permian Delaware, and 3 more rigs were removed from Texas Oil District 7C, or the southern Permian Midland, and another rig was removed from Texas Oil District 8A, or the northern Permian Midland, and hence the Permian in Texas saw a total reduction of 19 rigs...since the overall Permian rig total was down by 23 rigs, that means that the 4 rigs that were pulled out in New Mexico must have been drilling in the western Permian Delaware, ​to ​account for the national Permian reduction of 23 rigs...elsewhere in Texas, two rigs were pulled out of Texas Oil District 1, one rig was pulled from Texas Oil District 2, and one rig was pulled out of Texas Oil District 3, any three of which could account for the 3 rig reduction in Eagle Ford shale, which stretches in a relatively narrow band through the southeastern part of the state and thus touches on 4 Oil Districts...in other states, the three rigs that were pulled out of Louisiana were th​ose that had been drilling in the Gulf of Mexico, the four rigs that were pulled out of North Dakota had all been drilling in the Williston basin, home of the Bakken shale, and the rig removed from the Ardmore Woodford accounts for the rig pulled out of Oklahoma...Oklahoma had another change, though, because an oil rig that was pulled out of the Granite Wash basin was offset by a natural gas rig that started up in that basin during the same period​....natural gas rigs were still down by one nationally, however, because 2 natural gas rigs were concurrently removed from ​"​other" basins not tracked separately by Baker Hughes in this report..

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