• Opec kingpin Saudi Arabia saw its rig count fall to a 30-month low of 115 in August; those targeting oil fell by four to 60, the lowest level since May 2014 (see chart 1). Saudi Arabia claims it is pressing ahead with ambitious long term plans to develop new output capacity, but the rig count figures suggest lower revenues and lower than anticipated reserves additions may be crimping its plans.
• But there is no sign of a dip in activity from Saudi’s key GCC ally Abu Dhabi. The Emirate saw its oil rig count hit an all-time high of 47 in August, one up on the previous record of 46 hit in November 2015, as it pursues capacity gains (see chart 2). Abu Dhabi is increasingly focusing its gas drilling offshore. The number of offshore gas rigs outnumbered those onshore in August for the first time since September 2013, part of ambitious plans to develop sour gas fields (MEES, 15 September). (CONTINUED - 392 WORDS)
