Natural Gas Hz Rig Comparison
I saw a post on Twitter highlighting the difference in natural gas rig activity at current prices versus the last sustained higher gas pricing. Going back, I couldn't find the post. So, I took the Baker Hughes and EIA datasets and put together a quick overview.
The last time gas prices sustained over $3.5 for 60 days was in 2014. At that 60-day point, there were 256 active gas-directed horizontal rigs. That is 166 higher than the latest report.
Of particular note, every gas play is down over 50% except the Haynesville formation, which is UP 7%.
The biggest two drops by rig count are the Marcellus down 43 and the Eagle Ford down 29.
Yes, rigs and completions technologies have improved markedly in the past five years. Plus, additional gas midstream infrastructure has been developed within oil fields. But a drop of 65% in gas rigs remains significant when considering future price movement.
The images attached show the data plotted and mapped.