Understanding the Enverus Daily Rig Count

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It’s the second Thursday in April and that means we have published the new Daily Rig Count. Since the Daily Rig Count is still relatively new, we decided to build an infographic to help you get the most out of the index.

Here at Enverus, we look at the enormous amount of data we ingest and verify every month as the fuel to power our (and your) decision engines. In fact, on Tuesday our CEO Allen Gilmer posted Drillinginfo’s US Oil Production Forecast on the Drillinginfo Blog after having used our DI Index and a few DI Analytics modules to BUILD A US PRODUCTION FORECAST IN A FEW HOURS!

Allen’s Post

On Monday afternoon, Allen was reviewing production numbers and realized that, lo and behold, the current numbers predicted a peak in US Oil Production.

He then fired up some of our Enverus Analytics modules and

  • calculated “core decline” for current well operations,
  • devised “production per well,”
  • cross-referenced active permits,
  • allowed for the current status of “drilled but not completed” wells,
  • and extrapolated the current trends as confirmation of his initial realization.

His post is quite entertaining and informative, and truly shows why we’ve earned the “better, faster” in our tagline.

Daily Rig Count in a nutshell

Today’s DI Index numbers continue to show reduced oil-field activity, and the resulting reduction in rig count and new oil production capacity. US permits are up a little bit over last month, which may show some optimism, but may just be drillers keeping options open.

As an example of some of the deeper concepts built into the DI Index, if we look at the permian basin, we notice that the drop in activity has impacted vertical wells more heavily than horizontals, which in this case partially explains the Permian Basin’s continued increase in production.

Your Turn

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Eric Roach

Eric Roach is the editor of Drillinginfo's blog, which was selected as the Top Oil & Gas Industry Blog based on visibility, engagement and relevance. He also prepares a weekly newsletter of top industry news for blog subscribers, and would be grateful if you would subscribe and tell your friends. (There's a box on the upper right of the page where you can subscribe).