Traders Grow Bearish On Glut, Rising Rig Count

Friday, July 29 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. DUC list flattens out

(Click to enlarge)

– The number of drilled but uncompleted wells (DUCs) flattened out in the first quarter of 2016, after a sharp build over much of 2015.- As of April 1, according to Bloomberg Intelligence, there were 4,230 wells that had been drilled but not completed. That number was more or less the same from January levels. – While some companies added DUCs to their portfolios in that time period, others began working through their backlog.- Bloomberg Intelligence estimates that the DUC backlog could disappear in the Permian by the end of 2017 even if oil prices stand at $40 to $50. The Eagle Ford could see its fracklog 70 percent finished over that timeframe as well. – Estimates vary on how much production the DUCs could add, from the low end of 250,000 barrels per day (Wood Mackenzie) to the most optimistic of around 1 million barrels per day (Citigroup).

2. BP cash flow not covering expenses

– BP reported another loss in the second quarter, the third consecutive quarter to do so. The oil major lost $2.25 billion, which is not quite as bad as a year earlier.- When…