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

Thursday, June 2, 2022

natural gas price hit 13½ year high; SPR at a 34½ year low; refinery use highest since 2019; first rig drop in 31 weeks

natural gas prices hit 13½ year high after a six-fold increase in less than 2 years; US oil exports at a 26 month high even with SPR at a 34½ year low & US oil supplies at a 17 year low; total oil + products inventories at a new 13½ year low even with highest refinery utilization rate since 2019 & greatest refinery throughput in 11 months; rigs fall first time in 31 weeks

oil prices rose for the fifth consecutive week as a European embargo of Russian oil began to seem more likely...after rising 2.5% to $113.23 a barrel last week as fuel prices hit record highs on tight supplies and pulled nearby crude prices higher, trading in the contract of US light sweet crude for June delivery expired, so on Monday oil price quotes were referencing the contract price for US light sweet crude for July delivery, which had ended last week priced at $110.28 a barrel, after rising 1.5% on the week...that contract opened this week higher as U.S. fuel demand, tight supplies, and a weaker dollar supported prices while Shanghai prepared to reopen after a two-month lockdown, but failed to hold the early momentum and finished trading little changed, settling up a penny at $110.28 a barrel, as worries over a possible recession weighed against the outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai's plans to reopen...oil prices held steady early Tuesday as Chinese efforts to cushion the impact of anti-virus lockdowns, including policies to help people buy cars, failed to reassure traders, and then turned lower as Hungary continued to hold up the EU's planned embargo on Russian oil, before settling down 52 cents on the session at $109.77 a barrel, as concerns over a possible recession and China’s COVID-19 curbs outweighed tight global supply and expectations of a summer driving season pick-up in fuel demand...oil prices rallied in early morning trading on Wednesday, led by the rising front-month gasoline contract, after the American Petroleum Institute reported gasoline stockpiles in the United States fell by a larger-than-expected margin, leaving supplies at their lowest level for this time of the year since 2013, and extended their gains after the EIA reported crude stockpiles fell by a million barrels, and that refiners had picked up the pace of processing last week, boosting capacity use to its highest since December 2019, and settled 56 cents higher at $110.33 a barrel after the Fed minutes revealed that while the central bank was sticking to its commitment to lift short-term interest rates, Fed officials were not planning more aggressive measures in tightening monetary policy....oil prices then jumped about 3% to a two-month high early Thursday after European Council President Charles Michel said he was confident an agreement to ban Russian supplies could be reached before the council's next meeting on May 30. and extended the early gains to settle $3.76 higher at $114.09 a barrel amid signs that the EU was closing in on a deal with Hungary and Czech Republic to ban Russian oil imports, at a time when global supplies were already slipping further into deficit...oil prices moved higher again early Friday, supported by a tight market due to rising gasoline consumption in the US and the possibility of an EU ban on Russian oil, and settled 98 cents higher at $115.07 a barrel after a volatile trading session, drawing support from strong worldwide demand for fuel, while the price of Brent, the global benchmark, jumped 3.5% on reports that Iran had seized two oil tankers in the Strait of Hormuz...so for the week, Brent crude finished 6 percent higher, while US oil prices rose 1.5%, even as the contract price for US light crude for July delivery, which just became the quoted front month contract on Monday, finished 4.3% above its price of the prior Friday..

meanwhile, natural gas prices rose the ninth time in eleven weeks and hit a 13½ year high as demand increased while supplies remained tight... after rising 5.5% to $8.083 per mmBTU last week as output slipped while demand for power generation and for exports remained high, the contract price of natural gas for June delivery jumped 66.1 cents, or more than 8%, to a near 13-year high of $8.744 per mmBTU on Monday, as US consumers cranked up their air conditioners to escape a spring heatwave and LNG exports plants consumed more of the fuel....prices then rose 5.2 cents and went on to close at new 13 year high of $8.796 per mmBTU on Tuesday, as gas volumes flowing to liquefied natural gas export plants jumped to the highest in seven weeks, and on raised forecasts for demand next week...natural gas prices then soared to over $9 for the first time since ​August ​2008 on Wednesday, and hit $9.399 per mmBTU in a furious rally amid robust calls for U.S. exports and worries that fragile supplies might prove inadequate to meet summer cooling demand, before pulling back to settle 17.5 cents higher at $8.971 per mmBTU​, ​as power generators and LNG export plants continued to consume more of the fuel.....natural gas prices opened higher and shot up to another 13 year high at $9.401 per mmBTU on Thursday, as traders digested a weak storage report and renewed concerns about a supply crunch, but pulled back in volatile trading ahead of the contract expiration on forecasts for lower demand this week than was previously expected, and settled 6.3 cents lower at $8.908 per mmBTU, while the new front month contract price of natural gas for July delivery fell 9.8 cents to $8.895 per mmBTU...that July contract price fell again on Friday, giving up 16.8 cents to settle at $8.727 per mmBTU, on rising output and lowered forecasts for demand over the next two weeks, but still finished 6.7% higher on the week, even as Reuters and other media outlets call it an 8% gain for the week, referencing the difference between the June contract starting price and the July contract ending price...    

with natural gas prices hitting a 13½ year high this week, we'll include a price graph for them and take a look at how it relates....

the above is a screenshot of the interactive natural gas price chart from barchart.com, which i have reset to show ​weekly natural gas prices over the past 3 years, in order to show the recent lower prices...this same chart can be reset to show prices of front month or individual monthly natural gas futures contracts over time periods ranging from 1 day to 30 years, as the menu bar on the top indicates, and also to show natural gas prices by the minute, hour, day, week or month for each...each bar in the graph shown above represents the range of natural gas prices for a single week, with weeks when prices rose indicated in green, and weeks when prices fell indicated in red, with the small sticks above or below each weekly bar representing the extent of the price change above or below the opening and closing price for the week in question.....likewise, the bars across the bottom show trading volume for the weeks in question, again with up weeks indicated by green bars and down weeks indicated in red...you'll note that by positioning our cursor over the week of June 22 2020, indicated by a thin vertical line, we have caused that week's natural gas prices to be displayed in red in the upper left corner of the graph...there we can see that natural gas prices opened at $1.671 per mmBTU ​on Monday of ​that week, fell to as low as $1.440/mmBTU, and closed that week at $1.544/mmBTU, all prices that are less than one-sixth of the $9.401 per mmBTU that front month natural gas prices hit this week...we can also use that interactive graph feature to determine that natural gas prices finished​ trading​ at $3.579/mmBTU on December 31st of 2021, and were still as low as $4.748 per mmBTU during the week beginning March 21st of this year...those readings serve to establish that natural gas prices have increased by more than sixfold in less than two years, that they had at one time this week increased by 263% year to date, and had nearly doulbed over the past nine weeks...

The EIA's natural gas storage report for the week ending May 20th indicated that the amount of working natural gas held in underground storage in the US rose by 80 billion cubic feet to 1,812 billion cubic feet by the end of the week, which still left our gas supplies 387 billion cubic feet, or 17.6% below the 2,199 billion cubic feet that were in storage on May 20th of last year, and 327 billion cubic feet, or 15.3% below the five-year average of 2,139 billion cubic feet of natural gas that have been in storage as of the 20th of May over the most recent five years....the 80 billion cubic foot injection into US natural gas working storage for the cited week was less than the average forecast for a 87 billion cubic foot injection from an S&P Global Platts survey of analysts, and it was also less than the average injection of 97 billion cubic feet of natural gas that had typically been added to our natural gas storage during the same week over the past 5 years, and ​was ​much less than the 109 billion cubic feet that were added to natural gas storage during the corresponding week of 2021... 

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 20th indicated that after another jump in our oil exports, another oil withdrawal from the SPR, and even after an increase in oil supplies that could not be accounted for, we had to pull oil out of our stored commercial crude supplies for the 3nd time in 8 weeks, and for the 26th time in the past 43 weeks …our imports of crude oil fell by an average of 82,000 barrels per day to an average of 6,486,000 barrels per day, after rising by an average of 299,000 barrels per day during the prior week, while our exports of crude oil rose by 821,000 barrels per day to a 26 month high of 4,341,000 barrels per day during the week, which together meant that our trade in oil worked out to a net import average of 2,145,000 barrels of oil per day during the week ending May 20th, 903,000 fewer barrels per day than the net of our imports minus our exports during the prior week…over the same period, production of crude oil from US wells was reportedly unchanged at 11,900,000 barrels per day, and hence our daily supply of oil from the net of our international trade in oil and from domestic well production appears to have totaled an average of 14,045,000 barrels per day during the cited reporting week…

Meanwhile, US oil refineries reported they were processing an average of 16,269,000 barrels of crude per day during the week ending May 20th, an average of 334,000 more barrels per day than the amount of oil than our refineries processed during the prior week, while over the same period the EIA’s surveys indicated that a net of 999,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US....so based on that reported & estimated data, this week’s crude oil figures from the EIA appear to indicate that our total working supply of oil from storage, from net imports and from oilfield production was 1,225,000 barrels per day less than 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 inserted a (+1,225,000) barrel per day figure onto line 13 of the weekly U.S. Petroleum Balance Sheet in order to make the reported data for the daily supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus suggesting there must have been an error or omission of that magnitude in this week’s oil supply & demand figures that we have just transcribed..... moreover, since last week’s EIA fudge factor was at (-214,000) barrels per day, that means there was a 1,439,000 barrel per day difference between this week's balance sheet error and the EIA's crude oil balance sheet error from a week ago, and hence the week over week supply and demand changes indicated by this week's report are completely worthless.... however, since most everyone treats these weekly EIA reports as gospel, and since these figures often drive oil pricing, and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it's published, and just as it's watched & believed to be reasonably 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)….

week's 999,000 barrel per day decrease in our overall crude oil inventories left our total oil supplies at 951,814,000 barrels at the end of the week, our lowest oil inventory level since January 7th, 2005, and thus a 17 year low….this week's oil inventory decrease came as 146,000 barrels per day were being pulled our commercially available stocks of crude oil, while 853,000 barrels per day of oil were being pulled out of our Strategic Petroleum Reserve at the same time....that draw on the SPR would now include the initial emergency withdrawal under Biden's "Plan to Respond to Putin’s Price Hike at the Pump", that is expected to supply 1,000,000 barrels of oil per day to commercial interests from now up to the midterm elections in November, in the hope of keeping gasoline and diesel fuel prices from rising further up until that time, as well as the previous 30,000,000 million barrel release from the SPR to address Russian supply related shortfalls, and the administration's earlier plan to release 50 million barrels from the SPR to incentivize US gasoline consumption....including other withdrawals from the Strategic Petroleum Reserve under recent release programs, a total of 124,136,000 barrels of oil have now been removed from the Strategic Petroleum Reserve over the past 22 months, and as a result the 532,013,000 barrels of oil still remaining in our Strategic Petroleum Reserve is now the lowest since September 4th, 1987, or at a 34 1/2 year low, as repeated tapping of our emergency supplies for non-emergencies or to pay for other programs has already drained those supplies considerably over the past dozen years....furthermore, the total 180,000,000 barrel drawdown over the next six months will remove almost a third of what remains in the SPR, and leave us with what would be less than a 20 day supply of oil at today's consumption rate, as the following graph illustrates...

The above graph comes from a post by oil and gas researcher Rory Johnston at Substack, wherein he discusses the implications of the million barrel per day SPR release, and it shows the historical quantity of oil held in our Strategic Petroleum Reserve, beginning from its inception following the Arab Oil Embargo of 1973-74 to the present day...the graph is further annotated to indicate the reasons for major additions to and withdrawals from the SPR, most of which were due to disruptions to oil supplies following hurricanes in the Gulf (you can get a better view of those annotations by clicking on the graph, or even better yet, view the enlarged original at substack.com....on the far right, Rory has projected where the strategic petroleum Reserve will end up after the Biden withdrawals are complete, which will take the SPR back to its level of 1983, while it was still being filled....based on an estimated average daily US oil consumption of 18,000,000 barrels per day, the US will have roughly 18 1/2 days of oil supply left in the Strategic Petroleum Reserve this November, after all three of the Biden administration's SPR withdrawal programs have run their course ... 

Further details from the weekly Petroleum Status Report (pdf) indicate that the 4 week average of our oil imports rose to an average of 6,414,000 barrels per day last week, which was 8.6% more than the 5,906,000 barrel per day average that we were importing over the same four-week period last year….this week’s crude oil production was reported to be unchanged at 11,900,000 barrels per day even though the EIA's rounded estimate of the output from wells in the lower 48 states was 100,000 barrels per day lower at 11,400,000 barrels per day, because Alaska’s oil production was 13,000 barrels per day higher at 460,000 barrels per day and thus added 100,000 barrels per day to the final rounded national total (by the EIA's math, not mine)...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 9.2% below that of our pre-pandemic production peak, but was 41.2% above the interim low of 8,428,000 barrels per day that US oil production had fallen to during the last week of June of 2016...

US oil refineries were operating at 93.2% of their capacity while using those 16,269,000 barrels of crude per day during the week ending May 20th, up from the 91.8% utilization rate of the prior week, and the highest refinery utilization rate since December 2019the 16,269,000 barrels per day of oil that were refined this week were the most in 11 months, 6.8% more barrels than the 15,239,000 barrels of crude that were being processed daily during week ending May 21st of 2021, and 25.2% more than the 12,991,000 barrels of crude that were being processed daily during the week ending May 22nd, 2020, when US refineries were operating at what was then a much lower than normal 71.3% of capacity during the first wave of the pandemic, but still 3.0% less than the 16,767,000 barrels that were being refined during the prepandemic week ending May 24th 2019, when refinery utilization was at a more normal 91.2% for the third weekend of May...

Even with the increase in the amount of oil being refined this week, gasoline output from our refineries was again lower, decreasing by 151,000 barrels per day to 9,423,000 barrels per day during the week ending May 20th, after our gasoline output had decreased by 142,000 barrels per day over the prior week.…this week’s gasoline production was 3.3% less than the 9,748,000 barrels of gasoline that were being produced daily over the same week of last year, and 4.7% below our gasoline production of 9,883,000 barrels per day during the week ending May 17th, 2019, ie, the year before the pandemic impacted gasoline output....on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) increased by 267,000 barrels per day to 5,147,000 barrels per day, after our distillates output had decreased by 2,000 barrels per day over the prior week…and after other recent production increases, our distillates output was 10.3% more than the 4,665,000 barrels of distillates that were being produced daily during the week ending May 21st of 2021, but still 1.1% less that the 5,206,000 barrels of distillates that were being produced daily during the week ending May 10th, 2019...

With the decrease in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the fifteenth time in sixteen weeks, decreasing by 482,000 barrels to 219,707,000 barrels during the week ending May 20th, after our gasoline inventories had decreased by 4,779,000 barrels over the prior week....our gasoline supplies decreased by less this week than last because the amount of gasoline supplied to US users decreased by 229,000 barrels per day to 8,798,000 barrels per day, and because our exports of gasoline fell by 183,000 barrels per day to 774,000 barrels per day, while our imports of gasoline fell by 29,000 barrels per day to 847,000 barrels per day....but even with 15 inventory drawdowns over the past 16 weeks, our gasoline supplies were still only 5.5% lower than last May 21st's gasoline inventories of 232,481,000 barrels, and 8% below the five year average of our gasoline supplies for this time of the year…

With the big jump in our distillates production, our supplies of distillate fuels increased for the 5th time in nineteen weeks and for the 12th time in thirty-eight weeks, rising by 1,657,000 barrels to 105,264,000 barrels during the week ending May 20th, after our distillates supplies had increased by 1,235,000 barrels during the prior week….our distillates supplies rose this week even though the amount of distillates supplied to US markets, an indicator of our domestic demand, rose by 51,000 barrels per day to 3,867,000 barrels per day, and even though our exports of distillates rose by 122,000 barrels per day to 1,124,000 barrels per day, while our imports of distillates fell by 8,000 barrels per day to 114,000 barrels per day....but.after forty-one inventory withdrawals over the past fifty-eight weeks, our distillate supplies at the end of the week were 17.2% below the 129,082,000 barrels of distillates that we had in storage on May 21st of 2021, and about 21% below the five year average of distillates inventories for this time of the year…

Meanwhile, with this week's big increase in our oil exports, our commercial supplies of crude oil in storage fell for the 16th time in 26 weeks and for the 33rd time in the past year, decreasing by 1,019,000 barrels over the week, from 420,820,000 barrels on May 13th to 419,801,000 barrels on May 20th, after our commercial crude supplies had decreased by 3,394,000 barrels over the prior week…with this week’s decrease, our commercial crude oil inventories remained about 14% below the most recent five-year average of crude oil supplies for this time of year, but were still about 18% above the average of our crude oil stocks as of the third weekend of May over the 5 years at the beginning of the past decade, with the disparity between those comparisons arising because it wasn’t until early 2015 that our oil inventories first topped 400 million barrels....since our crude oil inventories had jumped to record highs during the Covid lockdowns of spring 2020, and then jumped again after last year's winter storm Uri froze off US Gulf Coast refining, our commercial crude oil supplies as of this May 13th were 13.3% less than the 484,349,000 barrels of oil we had in commercial storage on May 21st of 2021, and were also 21.4% less than the 534,422,000 barrels of oil that we had in storage on May 22nd of 2020, and 11.9% less than the 476,493,000 barrels of oil we had in commercial storage on May 24th of 2019…

Finally, with our inventories of crude oil and our supplies of all products made from oil remaining near multi year lows, we are also continuing to keep track of the total of all U.S. Stocks of Crude Oil and Petroleum Products, including those in the SPR....the EIA's data shows that the total of our oil and oil product inventories, including those in the Strategic Petroleum Reserve and those held by the oil industry, and thus including everything from gasoline and jet fuel to propane/propylene and residual fuel oil, fell by 5,315,000 barrels this week, from 1,691,379,000 barrels on May 13th to 1,686,064,000 barrels on May 20th, after our total inventories had fallen by 7,939,000 barrels during the prior week....that left our total liquids inventories down by 102,369,000 barrels over the first 18 weeks of this year, and at the lowest since Nov 7th, 2008, or at a 13 1/2 year low...

This Week's Rig Count

The number of drilling rigs running in the US decreased for the first time in 31 weeks and for just the 7th time over the prior 87 weeks during the week ending May 27th, and still remained 8.4% below the prepandemic rig count.....Baker Hughes reported that the total count of rotary rigs drilling in the US decreased by one to 727 rigs this past week, which was still 270 more rigs than 457 rigs that were in use as of the May 28th report of 2021, but was also 1,202 fewer rigs than the shale era high of 1,929 drilling rigs that were deployed on November 21st of 2014, a week before OPEC began to flood the global market with oil in an attempt to put US shale out of business….

The number of rigs drilling for oil was down by 2 to 574 oil rigs during this week, after rigs targeting oil had increased by 13 during the prior week, and there are still 215 more oil rigs active now than were running a year ago, even as they still amount to just 35.7% of the shale era high of 1609 rigs that were drilling for oil on October 10th, 2014, and as they are still down 16.0% from the prepandemic oil rig count….at the same time, the number of drilling rigs targeting natural gas bearing formations rose by 1 to 151 natural gas rigs, which was the most natural gas rigs deployed since September 13th, 2019, and up by 53 natural gas rigs from the 98 natural gas rigs that were drilling during the same week a year ago, even as they were still only 9.4% of the modern high of 1,606 rigs targeting natural gas that were deployed on September 7th, 2008…in addition to rigs targeting oil and gas, Baker Hughes continues to show two "miscellaneous" rigs active; one is a rig drilling vertically for a well or wells intended to store CO2 emissions in Mercer county North Dakota, and the other is also a vertical rig, drilling 5,000 to 10,000 feet into a formation in Humboldt county Nevada that Baker Hughes doesn't track...a year ago, there were no such "miscellaneous" rigs running...

The offshore rig count in the Gulf of Mexico was down by two to fifteen rigs this week, with all of this week's Gulf rigs drilling for oil in Louisiana waters....that's still one more than the count of offshore rigs that were active in the Gulf a year ago, when all 14 Gulf rigs were drilling for oil offshore from Louisiana…but in addition to rigs drilling in the Gulf, now there's also an offshore rig drilling in the Cook Inlet of Alaska, where natural gas is being targeted at a depth greater than 15,000 feet, while year ago, there were no offshore rigs other than those deployed in the Gulf of Mexico....and in addition to rigs offshore, we also have a water based directional rig, drilling for oil at a depth between 10,000 and 15,000 feet, inland in the Galveston Bay area, while during the same week of a year ago, there was also one such "inland waters" rig deployed...

The count of active horizontal drilling rigs was up by 2 to 666 horizontal rigs this week, which was also 251 more rigs than the 415 horizontal rigs that were in use in the US on May 28th of last year, but still 51.5% less than the record 1,374 horizontal rigs that were drilling on November 21st of 2014....on the other hand, the directional rig count was down by 3 to 36 directional rigs this week, even as those were still up by 9 from the 27 directional rigs that were operating during the same week a year ago…meanwhile, the vertical rig count was unchanged at 25 vertical rigs this week, while those were up by 10 from the 15 vertical rigs that were in use on May 28th of 2021….

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 27th, the second column shows the change in the number of working rigs between last week’s count (May 20th) and this week’s (May 27th) count, the third column shows last week’s May 20th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday 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 28th of May, 2021...

for all the sturm und drang we've seen with oil & natural gas prices​ recently​, changes ​to drilling ​activity ​​remain pretty tranquil...the 3 rig decrease in Louisiana includes the 2 Gulf of Mexico oil rigs that were idled in the state's offshore waters, and a rig pulled out of the Haynesville shale region in the northern​ part of the state, but one that was apparently not targeting the Haynesville....in Oklahoma, a natural gas rig was added in the Arkoma Woodford, an oil rig was added in the Cana Woodford, an oil rig was added in the Mississippian shale near Kansas, while an oil rig was pulled out of the Granite Wash basin near the border with the Texas panhandle...since the Oklahoma count ​was only up by one, we have to figure there was also a rig removed elsewhere in the state from a basin that Baker Hughes doesn't track...in Texas, the Rigs by State file at Baker Hughes shows us that a rig was added in Texas Oil District 2, which accounts for the oil rig added in the Eagle Ford shale, and that a rig was removed from Texas Oil District 6, which accounts for the oil rig pulled out of the Haynesville shale...by checking the North America Rotary Rig Count Pivot Table (Feb 2011 - Current) for the record of that Haynesville rig, we find it had been drilling in Panola County, Texas, while the other two Haynesville shale oil rigs are in Caddo Parish, Louisiana, in the northwest corner of that state....elsewhere in Texas, we find that a rig was pulled out of Texas Oil District 7C, which is in northernmost part of the Permian Midland, and that rigs were added in Texas Oil District 5 and in Texas Oil District 9, both of which ​are apparently targeting basins that Baker Hughes doesn't track...finally, since there was an oil rig added in the DJ Niobrara chalk of the Rocky's front range, we have to figure there was also a rig removed from a basin that Baker Hughes doesn't track in either Colorado or Wyoming to offset that, ​since both states rig total​s are ​unchanged...

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note: there’s more here

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