US Rig Count Crashes At Fastest Pace Since 2009 To 14-Month Lows

Tyler Durden's picture




 

Just as T.Boone Pickens warned, US Rig Counts are plunging. Down by 61 this week alone - the biggest weekly drop in over 5 years - at 1,750, this is now the lowest since November 2013 (and very close the lowest since 2010). The 10% or so plunge in the last 7 weeks is following the same trajectory as the 2008 collapse - which led to - just as Pickens suggested - a 50% crash in rig counts...

 

 

Pickens... "demand is down" - "lower demand is the main driver" - "rig count is gonna fall - drop 500 rigs in next 6-9 months"

This the first rig count drop year-over-year in a year...

 

Charts: Bloomberg

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Fri, 01/09/2015 - 14:46 | 5642749 Bangalore Torpedo
Bangalore Torpedo's picture

The real question at hand: once energy stocks finally re-connect w/WTI...what to buy?

Fri, 01/09/2015 - 14:54 | 5642800 J S Bach
J S Bach's picture

"...a 50% crash in rig counts..."

 

That must mean half of the markets are no longer "rigged".

Fri, 01/09/2015 - 15:19 | 5642939 KnuckleDragger-X
KnuckleDragger-X's picture

This isn't a rig crash yet but it'll come a time when the count is below 500 and fingers will be pointed at everyone but the guilty.

Fri, 01/09/2015 - 17:06 | 5643455 cossack55
cossack55's picture

Every time you hear a rig crash an earth angel gets his/her wings.

Fri, 01/09/2015 - 15:49 | 5643097 Sudden Debt
Sudden Debt's picture

RIG and SDRL, they are both 4 baggers in the next 2 years.

Fri, 01/09/2015 - 16:49 | 5643380 FlacoGee
FlacoGee's picture

CRT

VOC

PWE (Could double - Could go bankrupt).

Fri, 01/09/2015 - 14:46 | 5642753 InjectTheVenom
InjectTheVenom's picture

some folks gonna be unemployed !

Fri, 01/09/2015 - 15:07 | 5642886 Carpenter1
Carpenter1's picture

Oil to zero

Rigs to zero

Fri, 01/09/2015 - 15:54 | 5643121 Sudden Debt
Sudden Debt's picture

Rigs to zero is oil to 500 dollars, poor people in America will turn into homeless people in America, middleclass will turn into homeless people and there will be panick and murders allover the country.

People still don’t realize what fhe implications would be. Starvation, murders, lootings and gans who would take over.

Now oild with this rig count needs to be at 120, if it goes lower, we’ll go to 200, lower than the 2009 count and all bets are off.

Having a gun wouldn’t protect your ass at all. You’d probably be one of the first to die.

Fri, 01/09/2015 - 16:25 | 5643258 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

So do you think this is in the cards??

Fri, 01/09/2015 - 18:27 | 5643761 Sudden Debt
Sudden Debt's picture

Yep, what we’re seeing is the destruction of the supply lines of oil in the west.once they’re broken up, it will take years to restart if they ever get funding again.the closer we get to 35 dollar oil, the closer we get to 200 or 300 oil.when a oilfield goes bankrupt, the debts stay with the field for a long time as the creditors wait it out.So if they e er want to restart they’ll need twice the funding!What almost everybody here is thinking is that when the price goes down demand will keep slowing and keep their gastank cheap.But it won’t... at all.... we’ll see way higher oil prices soon enough with way higher food and water prices, way higher.The fed wants i flation? Well, it seems that this is how they create it, by putting a bomb under profitable income. People should worry, worry a lot! America should be stocking up on oil like China is doing. Asap!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sat, 01/10/2015 - 13:14 | 5645784 wrs1
wrs1's picture

are you stoned, drunk?  Your post doesn't make sense, oilfields don't go bankrupt and pipelines keep flowing oil no matter who is bankrupt or otherwise.  If the oil quits flowing you and the rest of the ZHers are fucked.

Fri, 01/09/2015 - 19:55 | 5644101 Bernanke'sDaddy
Bernanke'sDaddy's picture

Hmmm. In that situation, you're correct. Having A gun won't help.

HOWEVER, having a FUCKING ARSENAL of the finest assault rifles the U.S. and Russia have produced, along with tens of thousand of rounds of ammo and a defensible position WILL.

It's amazing what having an arsenal will solve.

Fri, 01/09/2015 - 14:47 | 5642759 homiegot
homiegot's picture

T. Boone Pickens said rig count, bitchez.

Fri, 01/09/2015 - 14:49 | 5642764 WTFRLY
WTFRLY's picture

2015 is going to be exciting compared to the last 5 years of rhetoric. The lies are bleeding out.

 

10 things the media won’t be talking about after the Paris terror attack

WTF News put the Charlie Hebdo ISIS cartoon in the site header… Because…

Fri, 01/09/2015 - 14:49 | 5642769 I am a Man I am...
I am a Man I am Forty's picture

going much much lower if oil stays at these prices

Fri, 01/09/2015 - 14:51 | 5642788 CanadaFrank32
CanadaFrank32's picture

Shell lay offs in Alberta... It begins...

Fri, 01/09/2015 - 14:54 | 5642798 OV61FVF
OV61FVF's picture

Calgary RE is about to hit an air pocket.

Fri, 01/09/2015 - 17:03 | 5643448 Panem et Circus
Panem et Circus's picture

Canadian GDP...

Fri, 01/09/2015 - 17:27 | 5643530 Freddie
Freddie's picture

Maybe Canadians will remember how NWO-ZWO Harper was incredibly nasty and childish to Putin.  Harper the lackey was all for this.

Fri, 01/09/2015 - 14:53 | 5642797 Ewtman
Ewtman's picture

Falling oil prices are taking their toll on American energy companies. On Sunday, Texas shale oil company, WBH Energy, filed for bankruptcy in Austin, Texas, the first American shale oil company to do so, but probably not the last.

 

http://www.globaldeflationnews.com/shale-oil-companies-on-the-ropes-firs...

 

OIL's future..

http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...

Fri, 01/09/2015 - 14:54 | 5642801 LostandFound
LostandFound's picture

Its on like Donkey Kong, i thought 2016 was the year when the whole thing explodes but i sense i am being optimistic.

Fri, 01/09/2015 - 14:54 | 5642803 Ness.
Ness.'s picture

More than 10,000 people working at Mexican oil service companies were laid off this week as state-owned Petroleos Mexicanos cut contracts in the face of the global slump in crude prices. More job losses are expected.

 

Viva Mexico!!

 

http://www.bloomberg.com/news/2015-01-08/mexico-cuts-10-000-oil-service-...

Fri, 01/09/2015 - 15:00 | 5642832 skipjack
skipjack's picture

Result: 10,000 more Mexicans headed north...

Fri, 01/09/2015 - 15:13 | 5642906 Ness.
Ness.'s picture

Viva 'Merica!!! <self edit> At least they'll be able to get a college edumacation.  Nothing funnier than seeing 5,000 illegal Mexicans lined up to get a free education from Malcolm X College in Chicago.

Fri, 01/09/2015 - 15:01 | 5642813 mayhem_korner
mayhem_korner's picture

 

 

Hope those shut-in rigs aren't securing any loans.  /s

Sat, 01/10/2015 - 13:11 | 5645777 wrs1
wrs1's picture

Wells get shut in, rigs get stacked until a new well needs to be drilled and who knows, some rigs may be owned with a mortgage, so what?

Fri, 01/09/2015 - 15:04 | 5642866 disabledvet
disabledvet's picture

Now who's the mo mo monkey?

 

If equities refuse to correct....its the end of the world!

if oil drops a dollar....horrible news!  We're doomed!

 

This is All

RANK SPECULATION.

 

Natural gas production is STILL surging.

Fri, 01/09/2015 - 16:56 | 5643418 sun tzu
sun tzu's picture

Except NG prices down 35% the last 3 weeks

Fri, 01/09/2015 - 17:04 | 5643452 Panem et Circus
Panem et Circus's picture

In this over leveraged world, everything affects everything.

Fri, 01/09/2015 - 15:09 | 5642869 One And Only
One And Only's picture

Yea. So buy oil.

The Saudi Arabia of America is cutting production. Shit I'm buying here and holding.

This is the world's most important commodity next to water. I'll buy a 60% sale.

UCO is 8 bucks per share. My burger flipper can buy that.

Fri, 01/09/2015 - 17:06 | 5643458 Panem et Circus
Panem et Circus's picture

I like the knife to hit the floor before I try to grab it.

Fri, 01/09/2015 - 17:39 | 5643572 Blano
Blano's picture

Unfortunately I can never tell where the floor is. 

Fri, 01/09/2015 - 15:16 | 5642933 Dr. Engali
Dr. Engali's picture

We rig crashed some folks.

Fri, 01/09/2015 - 15:30 | 5643006 RogerMud
RogerMud's picture

oops, someone pressed down instead of up for the 2:30 ramp

Fri, 01/09/2015 - 15:56 | 5643129 dkd
dkd's picture

hey CNBC, guess, T. Boone ain't so dumb after all

Fri, 01/09/2015 - 16:11 | 5643197 NEOSERF
NEOSERF's picture

No question half the rigs out there now are unprofitable or barely profitable at $75 oil.  Capex getting slashed, LOC being revoked or becoming usurous, and rigs declining daily...oil will be $75 by 4th of July.

Fri, 01/09/2015 - 16:33 | 5643307 clade7
clade7's picture

If we can only get the "Nig" count to crash likewise, everything would be coming up daisys!  C'mon!  Its just one little consonant!  USA!  USA!

Fri, 01/09/2015 - 21:45 | 5644495 roadhazard
roadhazard's picture

Boone Pickens is a blow hard. He's always wanting the Government to give him money to speculate on.

Sat, 01/10/2015 - 18:02 | 5646582 mopickens
mopickens's picture

I've got 25% working interest on 220,000 acres in Pecos County Texas - looking for a partner - mopickens@gmail.com

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