Re: Rig Count... Crude Oil Chart
The delay between when rigs are stacked and production declines is generally 7-9 mos. We should start seeing NA's production dropping starting in November with these declines inreasing until 6 mos. after the oil rig count gets back to 600 or so. The international rig count which did not grow as fast as NA's has experienced a similar drop but not to the same degree.
There is still a large number of DUC's to be worked down.
As a note we may not see E&P's appreciate as we had in the past but those payng dividends will no doubt increase them. If the appreciation is not great we will also see more M&A in the sector. Whitecap purchased NAL at $7m per flowing barrel. It does not seem too long ago when the shale boys were buying as well as some Canadians at $80-100m per flowing barrel. It is definetly cheaper to buy a well run companies production than to drill for it.