2pm update - no rigs does not equate no wells

Whilst US equities are holding significant gains, there is a rather notable instance of possible extreme idiocy on clown finance TV. Even on the clown scale, the notion that the lack of a drill rig means oil is not being pumped out of the ground is truly bizarre. Does Mr S seriously believe it?

Brian Sullivan 'No rigs means no wells'

sp'60min

Summary

*the latest RIG count showed a drop of 28, rather more than expected, taking the current active count to just 439.

Effectively, around two thirds of the industry has ceased to operate since summer 2014.
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Honestly, I'm not quite sure if Sullivan is merely just not wording things correctly, but considering its the mainstream clown news TV... I can't figure it out.

Do they not realise they even if the Baker Hughes RIG count goes to ZERO.. that only means the number of new wells being drilled is ZERO... not existing wells.... of which there were around 1.1 million in 2014. I'd imagine that number is currently around 1.2 - 1.3 million as of today.

Indeed, even if the RIG count was ZERO for a few years, oil/gas production would only very slowly taper off.

.. and that is why supply is going to remain a real problem in the mid term, as demand is not going to significantly increase this year.

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Anyway... back at 3pm