With all the recent talk of OPEC and Russia coming to an agreement on limiting oil production to stabilize crude oil prices at a meeting in Algeria on September 26-28, 2016, one wonders how the outcome will affect activity in the Niobrara and other plays in Colorado.
We have provided a chart of the Colorado rig count from 2000 to September 2016 that shows the average rig count per month during that period of time. The data was tabulated from the Baker Hughes Rig Count site from their Rigs by State spreadsheet.
Some key markers that may have an influence on the Colorado rig count have been entered on the chart for reference. Markers such as the date of the 2008 stock market crash, the date of the JAKE well discovery, the beginning of the latest oil price slide, and the recent lowest price of West Texas International are most likely important drivers of oil activities in Colorado.
Historically, it would appear the the current state rig count sits very close to where it was sixteen years ago in 2000, all before the stock market crash and the shale oil phenomenon.
Only recently has there been a slight upturn in the rig count trend that started down in the middle of 2014. Is this just a slight bounce, or a recovery to more healthy rig count levels? Only time will tell, but any price positive agreement on supply limitations from OPEC and other oil producing nations will no doubt contribute to a larger Colorado rig count.