The driller contractor community should have a busy year, according to The Land Rig Newsletter team in the latest issue of The Unconventional Drilling Report. Oil rigs are about to pierce the 250 level for unconventional plays covered in the UDR, up from 177 in the inaugural July issue. Could it hit 300 by midyear? It is possible. Since October, the count has expanded by 51. Operators are throttling up development efforts in liquids plays with proven economics and are putting the pedal to the metal at identifying and appraising new liquids opportunities.

Crude prices remain at levels that support ongoing exploration for unconventional oil and liquids in the U.S., and downside risks appear manageable. This was particularly evident at this year’s winter NAPE conference. The Niobrara, Wolfberry, and Bakken all had strong showings in the exhibit hall. Moreover, industry “buzz” at the conference can be summed up by one comment: “If you have a good play, money is not an issue. There is more money available now than ever before.” 

Recent weakening of the gas rig count may point to increasing unease about 2010 gas prices and thus a growing attraction for the liquids-rich shale plays, as the outlook for oil prices looks relatively more robust. The oily Bakken continues to surge, of course, while the Eagle Ford has the appeal of a hybrid play, encompassing shale gas, condensate, and oil—perhaps what could be thought of as a built-in “hedging” cushion of sorts as oil and gas prices continue to decouple.

The relative appeal of oil also explains why the Permian Basin registered a strong uptick of 22 in rig count in The Land Rig Newsletter’s Biweekly Report. There’s been significant growth in activity in recent months in the Spraberry Trend. Much of the focus is on another hybrid play—the “Wolfberry,” a multi-frac, low-perm target encompassing together the Spraberry and the underlying Wolfcamp. In late September, the Biweekly Report counted 49 active locations with 29 rigs running in the Spraberry Trend. The latest tally shows 78 active locations with 50 rigs running.