US Rig Count Still Dragging at a Three-Year Low
At the end of last week, the number of operating oil and gas rigs in the U.S. remained unchanged from the previous week and was still stuck at a three-year low, according to data released in the latest Baker Hughes rig count.
The U.S. had 790 oil and gas drilling rigs last week, which was down 261 rigs from the same time last year. There have been undramatic changes to the rig count for weeks as oil prices have been stubbornly below $55 since the beginning of this year.
In response the plummeting prices, oil and gas operators counteracted by tightening budgets, pulling back on exploration and production, and focusing on maintaining existing projects. Thus, the absence of any drilling activity spikes.
Texas still claims 397 active rigs, about half of the nation’s total.
Last week Canada lost two rigs from the prior week resulting in 255 active rigs. Internationally, the rig count fell by 26 to land at 1,078.
The rig count has long been a historical temperature check for industry activity. It makes sense that more rigs become active when prices rise, but it can take a period of sustained higher prices before drillers are confident enough to make the leap. Rigzone contributor Jude Clemente recently explored this and other rig count caveats here.
To contact the author, email bertie.taylor@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension