Intl Rig Counts in Free Fall, What About Marcellus/Utica Counts?

Rig counts are a closely watched measure as an indicator of future drilling and therefore future production. Over the past several years, rig counts have become a much less accurate method for predicting future production simply because so many wells have been drilled--in the Marcellus and now Utica--that connecting those wells to production will take years to complete. So if the number of rigs actively drilling goes down, it doesn't correlate to a drop in production--not anymore. But rig counts are still important--the number of rigs actively drilling--because it's an indicator of economic impact. When rigs are drilling, all sorts of goods and services and jobs are needed--which makes everybody happy. Baker Hughes, in the process of being gobbled up by Halliburton, has been for years the go-to source for rig counts. They issue counts on a weekly basis. MDN keeps track of rig counts in our 3x/year Marcellus and Utica Shale Databook. We decided it's time to revisit rig counts--both globally and in the Marcellus/Utica--to see what the latest hullabaloo is all about. Are the counts going down in the northeast--and if so, where? The answer may surprise you...

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