Oil rig count plummets yet again

The number of rigs drilling for oil in the U.S. dropped by 26 this week, leaving just 413 rigs still seeking crude, according to Baker Hughes data.

Including gas rigs, the overall rig count of 514 rigs is at its lowest point since the last century, specifically 1999.

The total count is rapidly approaching the 1999 low of 488 rigs, which was the lowest point in Baker Hughes’ recorded history. Another drop of 26 rigs would tie the all-time record low.

Analysts expect the rig count to continue falling through much of the first half of the year. The U.S. benchmark for oil continues to hover at about $30 a barrel.

In the first two months of 2016 alone, drillers have mothballed 123 oil rigs. The natural gas rig count dropped by just one this week down to 101 rigs, which already is at a historic low.

Texas is still home to 46 percent of the nation’s operating rigs, but the biggest losses this week came from the Lone Star State. Seven rigs went dark in the Permian Basin and the Eagle Ford shale lost another four rigs. The Permian and Eagle Ford, in that order, are still the most active plays in the country.

The oil rig count is now down nearly 75 percent from its peak of 1,609 in October 2014 before oil prices began plummeting.

http://fuelfix.com/blog/2016/02/19/oil-rig-count-plummets-yet-again/