Newsroom

Enverus: Indicators to Quantify Rebounding Shale Industry Go Beyond Just the Rig Count

byEnverus

Austin, TX (June 9, 2020) – Enverus, the leading oil & gas SaaS and data analytics company, has released its latest FundamentalEdge report that explores the ongoing supply response to demand destruction caused by the COVID-19 pandemic. In this report, Enverus presents several additional indicators—beyond the traditional rig count—that are required to successfully quantify today’s worldwide oil & gas production decline and shifting energy markets.

For years, the rig count has been one of the most relied upon indicators of expected supply in the oil & gas industry. But rapidly improving efficiencies—especially in horizontal drilling technology—have dampened its direct correlation with supply volumes. The May rig count fell by 670, or 66%, since the March crash in oil prices. While this significant decline implies a dramatic drop in current production, it doesn’t tell the full story impacting shale oil & gas development, says Enverus.

“There’s no doubt the rig count has been an important tool to measure the health of the oil and gas industry,” says Rob McBride, senior director of Strategy and Analytics at Enverus. “However, with horizontal drilling, improved efficiencies, and advanced drilling plans, we’re seeing a different story being told beneath the surface. For example, determining which wells have been shut-in and taken offline, wells that have been drilled but not completed (DUCs), and pipeline data are just a few of the factors that aren’t detected by the rig count. And you need to look at everything to capture a complete view.”

“It’s also a rapidly changing market,” continued McBride. “Dramatic shifts like those witnessed in March, April, and May felt like they have no end for some, but in just the last few weeks, we’ve seen some COVID-19 restrictions lifted and the traditional summer travel period has begun. Habits and consumption have changed, and we may be seeing the next wave, in terms of demand. Additionally, a drop in crude oil prices means the loss of associated gas, which will inevitably result in a change for natural gas prices to meet U.S. demand, particularly in the upcoming winter months when demand peaks. Those signals can’t possibly be reflected in the rig count alone. Our latest report quantifies these changes to capture our new outlook for oil and gas.”

Members of the media can download a preview of the full report, 2020 Production: Shut-ins, DUCS, or contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

Visit enverus.com/managing-the-energy-market to stay informed of the latest market conditions.

About Enverus
Enverus is the leading data, software, and insights company focused on the energy industry. Through its SaaS platform, Enverus provides innovative technologies and predictive/prescriptive analytics, empowering customers to navigate the future. Enverus’ solutions deliver value across upstream, midstream and downstream sectors, enabling the industry to be more collaborative, efficient and competitive. With more than 1,300 employees across the globe, the Company’s solutions are sold to more than 6,000 customers across 50 countries. Enverus is a portfolio company of Genstar Capital and brings together the technology of Drillinginfo, RS Energy Group, PLS, 1Derrick, MineralSoft, Midland Map Co., Oil-Law Records, MarketView, DataGenic Group, PRT, Oildex, Cortex, Red Dog Systems, and RigData as one company. Creating the future of energy together. Learn more at www.enverus.com.

Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Enverus Press Release - Enverus selected for NET Power’s commercial initiative
News Release Newsroom
ByEnverus

AUSTIN, Texas (May 31, 2023) — Enverus, a leading energy-dedicated SaaS platform, is pleased to announce that clean energy technology company NET Power has selected it as its trusted data source for its business intelligence and analytics functions. Under terms...

Enverus Press Release - Enverus releases annual Top 100 Private E&P Operators list
News Release Newsroom
ByEnverus

CALGARY, Alberta (May 24, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, has released a list of the most prolific 100 private oil and gas producers in the U.S. based on gross operated production last year. Continental Resources,...

Enverus Press Release - Recession fears weigh bullish oil fundamentals down, higher natural gas prices needed
News Release Newsroom
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest quarterly FundamentalEdge report focused on global drivers for oil and gas prices to 2030, the five-year oil and gas supply and demand...

Enverus Press Release - Welcome to Enverus EVOLVE: The future of energy
News Release Newsroom
ByEnverus

Enverus, the most trusted energy-dedicated SaaS company, is inviting members of the media to EVOLVE, its annual conference that will be held virtually May 16 and 17. Enverus EVOLVE is the only conference that explores the future of energy through...

Enverus Press Release - Upstream M&A slides to $9B in 1Q23
News Release Newsroom
ByEnverus

CALGARY, Alberta (May 2, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, is releasing its summary of 1Q23 upstream merger and acquisition (M&A) activity. In Q1, U.S. upstream M&A saw $8.6 billion...

Enverus Press Release - Introducing CCUS Play Fundamentals
News Release Newsroom
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its inaugural CCUS Play Fundamentals report evaluating the full, source-to-sink value chain of carbon capture and storage at the national, regional and projects levels.

Enverus Press Release - Electric vehicles: A call on capital
News Release Newsroom
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company, has released a report covering electrical vehicle (EV) infrastructure, battery supply chain, demand for metals and the anticipated recycling boom that should...

Enverus_EIR_Press_Releasse_Renewables_Thumbnail
News Release Newsroom
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a report that analyzes the impact of wind and solar project design decisions made by developers and quantifies the choices that result in the...

Enverus Press Release - OPEC cuts and bank failures rattle oil markets in a new kind of March Madness
News Release Newsroom
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a new report following OPEC’s surprise cuts Sunday, April 2, 2023. Roughly two weeks after Silicon Valley Bank's (SVB) collapse rocked oil markets and...

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Access Tour

Access Product Tour

Speak to an Expert

Book a Demo