Dead Cat Bounce? U.S. Rig Count Cut 11 @ 630, M-U Stays Even @ 39
Two weeks ago, the U.S. rotary rig count rose nine after rising by one the week before that (see Hit Bottom? U.S. Rig Count Up 9 at 641, M-U Stays Even at 39). We’re suggesting those two weeks of increases were, perhaps, the proverbial “dead cat bounce,” meaning even a dead cat will bounce a little when hitting the ground after falling from a great height. Why our pessimism and sarcasm? Last week, the U.S. rig count erased all of those gains, dropping 11 rigs from the total, sinking to 630 active rigs — the lowest count since February of 2022 (19 months). The active count in the Marcellus/Utica remained at 39 last week (for three weeks running), which is the lowest count in the M-U this year.
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New shale permits issued for Sep 11 – 17 in the Marcellus/Utica rebounded. There were 22 new permits issued last week, up from 14 issued two weeks ago. But the increase came from an unlikely source. Last week’s permit tally included 9 new permits in Pennsylvania, 1 new permit in Ohio, and 12 new permits in West Virginia. WV is typically on the low end of permits, not the high end. The top permittee for the week was Antero Resources, which received 6 permits in WV. EQT was a close second with 5 permits in WV.
Have we finally turned a corner? Hit rock bottom and have begun a rebound? We are referring to the Baker Hughes U.S. rig count. Last Monday, we reported the weekly rig count had finally gained a rig–the first time since June (see 
The Ohio Dept. of Natural Resources (ODNR) has “temporarily” suspended the operations of four fracking waste injection wells in Athens County. ODNR says the wells present an “imminent danger” to health and the environment. One of the wells, owned by Reliable Enterprises LLC, is located in Rome Township. The other three are owned by K&H Partners and located in Torch.
For the first time since June, the national active U.S. rig count added rigs–a single rig–last week. The new active U.S. rig count is 632, up from 631 the previous week. Unfortunately, the Marcellus/Utica lost yet another rig, sinking to 39 active rigs. Once again, West Virginia was the unlucky state that lost a rig, now running just 8 shale rigs. The rig counts for both Pennsylvania and Ohio stayed the same last week.
Gulfport Energy, the third-largest driller in the Ohio Utica Shale (by the number of wells drilled), emerged from bankruptcy in May 2021 with a new board and top management. In January of this year, the company appointed a new CEO, John Reinhart, the former President and CEO of M-U driller Montage Resources Corporation before that company was gobbled up by Southwestern Energy (see 
The transient workers in the Ohio Utica Shale field must stay somewhere. That somewhere is typically a hotel or motel. Belmont County, one of the hotbeds of Utica drilling, has many such transient workers. Their overnight stays at area hotels and motels create a big pile of lodging tax revenue, which is used to help fund the Belmont County Tourism Council. And the Council is thankful for it!
Quick! Apply pressure to the wound before the patient (in this case, the Marcellus/Utica) bleeds out. Another week, another lost rig in the Marcellus. We can’t seem to stem the flow of rigs leaving. The national rig count also lost one rig overall. For the eighth week in a row and the 17th of the last 18 weeks, the U.S. active rig count lost rigs. The total is now down to 631 active rigs across both oil and gas (down from 632 last week). At least the loss is slowing. West Virginia dropped one rig after adding one last week. The rig counts for both Pennsylvania and Ohio stayed the same last week.
Two weeks ago, MDN editor Jim Willis offered the opinion that PTT Global Chemical is not going to build an ethane cracker plant in Belmont County (see 
The Ohio Dept. of Natural Resources (ODNR) released production numbers for the second quarter of 2023 late last week, and nobody noticed…except MDN (thanks to a tip from a good friend). ODNR no longer issues a press release to summarize the results as they once did. We’ve got the full spreadsheet with oil and gas production details for all 3,233 active shale wells in the Buckeye State. We’ve sliced and diced the numbers and have our usual Top 25 lists for natural gas and oil wells. We’ve added a couple of new charts summarizing the data, showing the total production for the quarter by driller (gas and oil) and the total production for the quarter by county. You’re gonna love it!
The rig count carnage continues. For the seventh week in a row and the 16th of the last 17 weeks, the U.S. active rig count lost rigs. A lot of rigs. Last week, the number decreased by 10 rigs after falling by 12 for the prior week. The total is now down to 632 active rigs across both oil and gas. Oil rigs have now fallen for a ninth straight month, while the combined oil and gas count has fallen for four straight months. After losing three rigs two weeks ago, the Marcellus/Utica count added one rig last week–in West Virginia.