Baker Hughes provides weekly rig counts by shale play and by state. In the Pennsylvania and Ohio, the rig counts seems to be under reported based on two observations. First, Ohio Department of Natural Resources in its weekly permitting report shows the number of rigs in Ohio. For the week ending September 6th, ODNR’s reported indicated that there were 45 rigs in OH and Baker Hughes reported 41 for the week ending September 5th a small discrepancy.
Second, in Pennsylvania, Baker Hughes shows rigs for the Marcellus and the Utica. The number of Marcellus rigs fluctuate monthly, but Utica is constant at two (2) rigs. Press releases from E&P companies drilling in Pennsylvania indicate that a few companies are drilling in the Utica and one or two are successfully drilling in the Devonian. Based on these observations, Baker Hughes is probably under reporting the rig count in Pennsylvania by about 10 or 15.
We will continue to report the Baker Hughes rig count in our Facts & Rumors our weekly newsletter, but we want our readers to be aware that the rig may a little lower than what actually in use.