Rig count

Also look at some of the company earnings reports. Chesapeake reported earnings the other day and outlined their drilling plans are about the same as last year.

 

Since 1940 the highest weekly US rig count was 4,530 recorded on December 28, 1981. The lowest rig count of 488 was recorded on April 23, 1999. Having lived through the last big crash, It comes with little warning...

historical rig counts...
december 1982 2695 rigs a drop of 1835 rigs in one year a drop of 40% in 12 months... a lot of jobs went bye bye
slow decline over the next three years....
december 1985 1950 rigs
and then 6 months later
june 1986 963 rigs

Just realize that the smart money saves for the day your job goes bye bye. As in the oil field jobs go bye bye quickly.

All those historical rig counts are from Rig Data...

It is a great tool to keep a recent hind sight on the happenings of the oil field. Checking the driller and producers quarterly earnings and forward looking statements also helps one to see what is coming...

 

With all the new technology and changes in drilling, I don't foresee a sudden collapse anytime soon. Drilling multiple wells on the same pad, recycling produced water to reuse in the fracking process, advances in chemical use and horizontal drilling are all reducing the costs to drill a well. Always be prepared for your future, but this boom seems to be here for quite sometime at least in the west Texas area.