US Rig Count Down 4% In One Week; Off 15% Since October 2014 - Dallas Morning News

The sharp decline in oil drilling continues, with the U.S. rig count falling to its lowest level in 16 months. As of Friday, there were 1,366 oil rigs operating across the country, a 4 percent drop from last week, according to oilfield services company Baker Hughes. Since Dec. 5, more than 200 oil rigs have been taken out of service, the largest six-week drop since Baker Hughes began compiling the rig count in 1987.

As the slump in oil prices continues, drilling is expected to decline further. West Texas Intermediate, the U.S. benchmark, closed at $48 a barrel Friday. That was up 5 percent on the day but a long way from July, when oil was trading over $100 a barrel.

“There’s only so much acreage and there’s only so many operators that can wring out economic returns out of sub-$50 oil,” said Jason Stevens, an energy analyst with the research firm Morningstar.

This week, no U.S. oil fields were spared from the fallout. The rig count in Eagle Ford, in South Texas, fell 5 percent to 174. In West Texas’ Permian Basin, 3 percent of the rigs shut down, with 481 still operating. In North Dakota’s Williston Basin, the rig count fell to 164, a 4 percent decline since last week.

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