Fewer Rigs, More Wells in 2013 – Schlumberger

by Kenneth E. DuBose on January 21, 2013

Schlumberger expects there will be fewer rigs active in 2013 than 2012, but there will be more wells drilled. The company reviewed its outlook for North America in its fourth quarter conference call.

But if you look at our view on 2013 for North America, we do expect the U.S. land rig count to be up between about 100 and 150 rigs in Q1, and this is based on the feedback from our customers. Now in terms of activity for the full year, we still see U.S. land rig count slightly down versus 2012, while the well count will be slightly up.

Other notable items from the call:

  • Expects the liquids rig count to bounce up in the first quarter of 2013
  • Do NOT see a significant recovery in dry-gas drilling in 2013
  • Natural Gas production remains strong
  • Hydraulic fracturing pricing is not expected to increase in 2013

As you hear locals begin to discuss rigs moving out of your area. Remember, a lower rig count does not mean there will be fewer wells drilled in your area. Operators get more efficient over time and need fewer rigs to develop their acreage.

{ 1 comment }

Joe January 23, 2013 at 2:21 pm

Has there been any further discussion of Chesapeake’s dry gas drilling in southwest oklahoma in the future?
They basically shut it down at the beginning of 2012, but were going gangbusters at the end of 2011.

Is future drilling simply going to be dependent on future gas prices getting above$4 and staying there?

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