Go Back
  • Drilling Activity Increasingly Concentrated Among Larger Fleets

    Drilling activity is increasingly concentrated among the larger fleets, according to The Land Rig Newsletter’s latest Biweekly Report. The number of operators running 10 rigs or more is the biggest in recent memory at 42. For the past year or so, that tally has generally been in a range of 32–35. As a group, the ≥10-rig operators are nearing a 60% market share and now stand almost 7 percentage points higher YOY. The average number of rigs run by this group also is higher, at 26, compared with 25 this time a year ago. Bear in mind that certain companies that used to be stalwarts in this category, such as Petrohawk, XTO, and Atlas, no longer exist. This increasing concentration of active rigs in the bigger fleets reflects the relentlessly expanding role of unconventional plays, where the midsize and larger, mostly public, companies focus their efforts. If these plays are also attracting the credit that otherwise still seems tight for small, private operators—which could help account for that group’s dwindling market share.

    Full story

    Comments (0)

  • Impacts of Recent E&P Deals on Unconventional Drilling

    With the latest flurry of E&P deals (Statoil-Brigham, Kinder Morgan’s impending sale of El Paso E&P)—and still more to come—what might be the impacts of M&A action would be to unconventional drilling? The Unconventional Drilling Report compared rig counts pre- and post-deals for other recent E&P deals focused primarily on unconventional plays and concluded:  Not much. ExxonMobil’s U.S. land rig count has scarcely budged since it acquired XTO, averaging 68 vs. their pre-acquisition tallies of 7 and 64, respectively. Post-acquisition Chevron has averaged 20 rigs since closing on Atlas vs. their respective pre-deal averages of 8 and 7. BHP has averaged 25 after closing on Petrohawk vs. pre-deal average tallies of 2 and 18, respectively. The biggest post-deal traction for bolstering rig counts has come not from outright acquisitions but from joint venture deals, namely Chesapeake’s, whose rig count jumped from a pre-JV 120 to an average 140 since the last JV closed (and recently peaked at 154). It will climb still further after an imminent JV closes on Chesapeake’s Utica Shale acreage. 

    Full story

    Comments (0)

  • Drilling Activity in the Mid-Continent Region

    Since October, rig counts in the Fayetteville have been stable at around 30 units.  This trend is likely to continue since a majority of capital going into the play is directed at development drilling.  Southwestern Energy has been the most active operator with an average of 13 rigs in recent months.  ExxonMobil’s XTO subsidiary and Chesapeake have also been active in the play.  Its subsidiary contractor, Desoto Drilling, performs most of Southwestern’s drilling.  Other contractors active in the play include Union Drilling, Nomac and Keen Energy Services.

     

    Persistently low natural gas prices have weighed on drilling activity in the Arkoma Woodford, the legacy Woodford play, in recent months.  Since yearend, the number of rigs drilling in the play has fallen by four to 18 rigs.  On a positive note, rig levels may find support now that two majors, BP and ExxonMobil, are some of the most active in the play.  Cactus has been the most active contract driller in recent months with seven rigs.

    Full story

    Comments (0)

  • ExxonMobil Completed Merger With XTO Energy

    ExxonMobil Corporation has completed its merger agreement with XTO Energy, Inc. The new organization will continue to be known as XTO Energy, Inc. and maintain its headquarters in Fort Worth, Texas.  Jack Williams, a former Vice President of ExxonMobil Development Co., has been elected President of XTO and Keith Hutton, formerly XTO’s Chief Executive Officer, is Executive Vice President of the new organization.

     

    Gulf Coast Western confirmed an oil and gas discovery in their Opelousas field in St. Landry Parish, LA.   Flow tests resulted in a production rate of approximately 672 bopd and 3.2 mcf/d.

     

    BP reports that two systems continue to collect oil and gas flowing from the Deepwater Horizon’s failed blow-out preventer (BOP) and transport them to vessels on the surface. Meanwhile, rough seas expected from Tropical Storm Alex could set back BP's efforts to increase subsea oil collection capacity at the gushing Macondo well by about a week, but should not interrupt current collection methods or drilling operations for two relief wells.

    Full story

    Comments (0)

  • ExxonMobil Completed Merger With XTO Energy

    ExxonMobil Corporation has completed its merger agreement with XTO Energy, Inc. The new organization will continue to be known as XTO Energy, Inc. and maintain its headquarters in Fort Worth, Texas.  Jack Williams, a former Vice President of ExxonMobil Development Co., has been elected President of XTO and Keith Hutton, formerly XTO’s Chief Executive Officer, is Executive Vice President of the new organization.

     

    Gulf Coast Western confirmed an oil and gas discovery in their Opelousas field in St. Landry Parish, LA.   Flow tests resulted in a production rate of approximately 672 bopd and 3.2 mcf/d.

     

    BP reports that two systems continue to collect oil and gas flowing from the Deepwater Horizon’s failed blow-out preventer (BOP) and transport them to vessels on the surface. Meanwhile, rough seas expected from Tropical Storm Alex could set back BP's efforts to increase subsea oil collection capacity at the gushing Macondo well by about a week, but should not interrupt current collection methods or drilling operations for two relief wells.

    Full story

    Comments (0)