The Ohio rig count has remained somewhat steady through the first 7 weeks of 2016. The Buckeye State did drop 1 rig from January to February, bringing the state’s total rig count to 13. This is down from 37 rigs in February 2015, roughly a 65% decrease from a year ago. Half of the 24 rigs that have been laid down over the past year, came from Belmont, Monroe, Guernsey and Noble Counties. Noble County and its northern neighbor, Guernsey County, have failed to add a single rig in 2016 and have not seen an active rig since the end of last November. This trend will likely continue for much of 2016 as most industry experts are projecting oil prices to not get above $40 per barrel for the remainder of the year. From the optimistic standpoint, Belmont and Monroe County do still have active rigs and have not laid down any since the start of 2016. However, both counties rig counts are down 30% and 33%, respectively, from a year ago. Eclipse Resources and Hess Corporation are the latest operators to follow the trend of other Ohio area operators when they announced their plans to significantly cut back production for 2016 and focus on the long-term future of their companies. As announcements like this continue to filter in, the Ohio rig count will likely fall even further before the numbers see any kind of improvement. The hope for increases in production for Ohio seem to become more bleak with every passing week, as the industry wide depression continues.
944-OhioRigCount_2.19.16.xlsx (15.6 KB)