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World Oil Supply

50

OPEC Monthly Oil Market Report – September 2017

US oil rig count

According to Baker Hughes’ latest report for the week to 8 September 2017, the US drilling rig count has

risen by 1 unit to 944 rigs (80.1% oil and 19.8% gas) w-o-w, while oil rig count declined by 3 units to 756 rigs

while gas rig count increased by 4 units to 187 rigs. The US oil rig count was higher by 436 rigs y-o-y, an

increase of 86%, and in terms of oil and gas split, increased by 83% to 756 rigs and 108% to 187 rigs,

respectively. As a result, the US rig count increased by 540 units (+134%) from the bottom of the rig count

on May 2016.

Graph 5 - 9: US weekly oil rig count

Graph 5 - 10: US weekly crude oil production

On a monthly basis, it was for the first time that the number of oil rigs decreased compares to the

consecutive months of increasing from May 2016, as well as decreasing also in the total US rig count by

7 units to 947 rigs. The US oil rig count in August was down by 2 units m-o-m to average 763 rigs, while it

was increased by 18 units a month earlier. In terms of oil rig count in the most prolific Basins, it is increased

by 4 units m-o-m in Permian to average 378 oil rigs in August, added 4 units in Cana Woodford to 65 rigs

and up by 1 oil unit in DJ-Niobrara to 30 rigs, while it was decreased in Eagle Ford, Williston and other

Basins. Onshore rigs climbed by 441 units y-o-y to 923 rigs. 83.4% of the rigs in the first 8 months of the

current year were active in horizontal drilling, although it declined by 6 units m-o-m to average 799 rigs in

August. The number of oil rigs in GoM was declined by 5 units m-o-m to average 14 rigs owing to

Hurricane Harvey.

Graph 5 - 11: US weekly oil rig count vs.

Crude oil production

Graph 5 - 12: US weekly oil rig count vs.

Horizontal drilling change

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

Rigs

Week

2016

2017

Average 2012-2016

Historical range

2012-2016

Sources: Baker Hughes, US Energy Information Administration

and OPEC Secretariat.

5

6

7

8

9

10

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

mb/d

Week

2016

2017

Average 2012-2016

Sources: US Energy Information Administration and

OPEC Secretariat.

Historical range

2012-2016

8.0

8.2

8.4

8.6

8.8

9.0

9.2

9.4

9.6

9.8

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Aug 15

Oct 15

Dec 15

Feb 16

Apr 16

Jun 16

Aug 16

Oct 16

Dec 16

Feb 17

Apr 17

Jun 17

Aug 17

mb/d

Rigs

US weekly oil rig count (LHS)

Crude oil production (RHS)

Sources: Baker Hughes and US Energy Information

Administration.

60

65

70

75

80

85

90

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Aug 15

Oct 15

Dec 15

Feb 16

Apr 16

Jun 16

Aug 16

Oct 16

Dec 16

Feb 17

Apr 17

Jun 17

Aug 17

%

Rig

US weekly oil rig count (LHS)

Horizontal drilling change (RHS)

Source: Baker Hughes.