Media Contact: Jon Haubert | 303.396.5996
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.”
Visit enverus.com/managing-the-energy-market to stay informed of the latest market conditions.
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.
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