{"id":6149,"date":"2015-03-02T07:03:54","date_gmt":"2015-03-02T12:03:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6149"},"modified":"2015-03-02T07:03:54","modified_gmt":"2015-03-02T12:03:54","slug":"oil-prices-dont-change-because-of-rig-count","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6149","title":{"rendered":"Oil Prices Don\u2019t Change Because of Rig Count"},"content":{"rendered":"<h3><a href=\"http:\/\/www.artberman.com\/oil-prices-dont-change-because-of-rig-count\/\" target=\"_blank\">Oil Prices Don\u2019t Change Because of Rig Count<\/a><\/h3>\n<p>Oil prices don\u2019t change based on weekly rig count reports.<\/p>\n<p>Yet every week, there are proclamations by analysts that oil prices are poised to recover\u00a0because of some change in the\u00a0<a href=\"http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=79687&amp;p=irol-reportsother\">Baker Hughes North American rig count<\/a>. Others\u00a0state that U.S. tight oil production will continue to rise despite falling rig counts because\u00a0of the miracle of shale rig efficiency.<\/p>\n<p>What this really\u00a0means is that nobody has any idea about when oil prices will rebound. As I have previously\u00a0<a href=\"http:\/\/www.artberman.com\/no-oil-price-rebound-yet-an-explanation-in-two-charts\/\">written<\/a>, that is because nothing has happened so far to cause a change in oil prices.<\/p>\n<p>What can we learn from rig counts? \u00a0The weekly U.S. rig count is another data point that, along with other data points, can help\u00a0us to see potential trends while we wait for\u00a0something meaningful to happen\u00a0that causes oil prices to rise\u2026or to\u00a0fall farther. But we have to do some work with the data before we can hope to get anything from the rig count and, even then, we must not read too much into it.<\/p>\n<p>First, the total North American or U.S. rig count is a practically meaningless number. Rig counts rise and fall all the time whether prices are rising or falling. \u00a0In the chart below,\u00a0the rig count shown in red changed weekly whether oil prices were rising or falling.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil Prices Don\u2019t Change Because of Rig Count Oil prices don\u2019t change based on weekly rig count reports. Yet every week, there are proclamations by analysts that oil prices are poised to recover\u00a0because of some change in the\u00a0Baker Hughes North American rig count. Others\u00a0state that U.S. tight oil production will continue to rise despite falling [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[47,594,2121,723,846,1893],"class_list":["post-6149","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-baker-hughes","tag-oil-prices","tag-oil-rig-count","tag-shale-oil","tag-us-shale-oil","tag-us-tight-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6149"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6149\/revisions"}],"predecessor-version":[{"id":6150,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6149\/revisions\/6150"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}