Access to quality empirical data is one of the greatest tools an investor can possess. Learn the location of active drilling rigs to get an idea of where drilling is proving to be most profitable.
Tracking the Active Oil and Gas Rigs
In the United States, anyone with a computer can identify the best places to drill for oil and gas. How is this possible? It’s simple. Every active drilling rig gets tracked 24/7. It is easy to monitor where it is today and where it will move to next. Drilling rigs are the vanguard. They point to where extractions of future oil and gas reserves will occur.
Drilling rig data is only of value if you have the means to interpret it. Then, you must apply the knowledge gained. You’ll want to either improve your position or identify worthwhile opportunities. Knowing the location of active drilling rigs and where they are going is of great value. The location of these rigs signals where industry experts see the greatest potential. They also point to where there are opportunities for future oil and gas production and development.
The Number of Active Rigs Is Rebounding
In 2020, during the height of the pandemic, demand plummeted. On May 12th of that year, the active rig count stood at 339. This was the lowest number since Baker Hughes started to report such data in 1987. The number of active rigs has rebounded from the throes of the pandemic. By early November 2021, the rig count had almost doubled, to 674.
The active rig count tends to rise and fall in relation to oil prices, with a lag time of roughly four months. For example, consider an EIA graph tracking WTI oil prices and rig counts for the past decade. You’ll see a close correlation.
Today, you will find the majority of the active gas rigs in the Marcellus and Haynesville regions. The Permian Basin accounts for the majority of active oil rigs. Many are also situated in the Eagle Ford and Bakken areas. There’s much to follow, but a systematic approach yields results. It’s important to stay current in following the rigs. Fluctuating demand and prices make it a dynamic, ever-changing situation.
The most prolific oil and gas shale basins in the United States cover a great deal of ground. Together, they contain upwards of 100 million mineral acres.
These millions of acres are spread across many states. In Texas alone, two-thirds of the counties in the state produce oil or gas for mineral rights owners. Texas oil has come a long way since January 10, 1901. On that day, an oil geyser at the Spindletop oil field shot 150 feet in the air. Oil surged from the ground at a rate of almost 100,000 barrels per day. One gusher delivered more oil in a day than the state had been producing in a year.
The key is to know where the highest value acres are. Knowing the current and future position of active drilling rigs is of enormous value. It gives you a head start with your research. It’s like knowing the answers to an exam in advance.
Experts Make Important Drilling Decisions
Much is at stake with every move made by an active drilling rig. Every decision is a costly, high-stakes one. Owners trust the smartest and most qualified professionals they can find. These experts include geologists, geophysicists, engineers, CFOs, and others. The cream rises to the top. This group of highly qualified experts controls the direction of U.S. oil and gas exploration.
When you “follow the rigs,” you are following the experts. You’re trusting the people the industry is trusting.
They establish a road map of where, when, and how to develop future oil/gas reserves. They refine their analyses until they zero in on a relatively small percentage of the country’s hundred million mineral acres. They identify the places where they believe the most profitable drilling will occur.
Put another way, you want to pay close attention to what the brightest minds in the industry think. Their decisions illuminate a path for potential investors. They signal where the lowest risk, highest yielding, and most prolific mineral acres are.
“Follow the rigs!”
Repeat the mantra over and over. Keep it at the forefront of your thinking. Then, make your oil and gas mineral rights decisions with confidence.
Rely on Verifiable Data
When you are investing in oil and gas rigs, you want to make decisions based upon verifiable empirical information. You want to rely on common sense and practical logic as well. To do this, identify where active drilling rigs are and where they are moving to.
An active oil or gas is a beacon that signals where the experts are focusing their attention. They signal where the economics of drilling makes sense. Think of each beacon emitting a piercing light that slices through the fog of uncertainty. Follow the rigs to step away from speculation and into the light.
What This Means for Your Money
Follow the rigs! Gather verifiable empirical data you can count on. Perform your due diligence by learning the location of the industry’s active rigs and where they are headed. The data sends a clear message. Looking for patterns in the data is key.
The location of active rigs is a key aspect of determining the value of mineral rights. Collectively, active rigs form a treasure map of U.S. oil and gas exploration. The advice repeated time and again in traditional real estate applies to mineral rights as well:
“Location, location, location!”
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Eckard Enterprises is a family-owned and operated firm founded in 1985. Our asset management services include U.S. oil and gas mineral rights. Our mission is to guide our investing partners to make solid, smart investment decisions. We strive to be reliable and accountable. We believe in being accessible and transparent.
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