US Rig Count Drops For Record 19th Week In A Row

Tyler Durden's picture

Rig counts fell for a record 19th week in a row. Total rigs dropped 34 to 954 and oil rigs dropped 26 to 374. This means the total rig count drop is now greater than 50% - the fastest drop since 1986.

 

Crude prices had slid into the rig count announcement and popped afterwards.

 

This is a record 19th week of consecutive rig count declines...

 

Leaving the total rig count decline now over 50% - the most since 1986...

 

Charts: Bloomberg

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DontGive's picture

It's down! Oh wait, looks like it's going back up. It's all good, crisis evaded.

BTW - WTF happened to chat? Did North Korea hax ZH?

greyghost's picture

with a "more" than 50% haircut in rigs working we only have a 57,000 barrel per day drop in oil production in the U.S. according to "oilprice".com's Nick Cunningham. Nick also says that opec is running 1.5 million barrels per day surplus alone, not counting any non-opec countries surplus.........and.....and oil goes up....only in a totally rigged market place. Nick also says that the price of oil is going to "spike"? I don't recall when Nick said this would take place.

El Vaquero's picture

It will spike after the shale companies get nuked.  The problem with a manipulated market, is that it is manipulating a tangible product that has to be put somewhere.  What happens to the price if oil storage gets full?  Nothing good.  And a lot of those companies have taken on quite a bit of debt.  If the price goes too low to quickly, we're talking a probable bond crisis. 

greyghost's picture

agreed el vaquero......what we need is chart porn showing the rig count along with the U.S. production of oil. the way the media talks about how rig counts are everything and yet "oilprice".com says we have a 57,000 barrel per day drop in production.....doesn't seem like much does it.

aurum4040's picture

I dont care how much of an oil surplus there is, accepting the trade of a barrel of finite crude for $50 USD intrinsically worhtless FRNs or less after printing the most money in the history of mankind is utter insanity. You seem to neglect the 'supply' side of worthless FRNs. 

chilli sauce's picture

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Bumbu Sauce's picture

And I was This close || to enrolling in commercial diving school...

Hippocratic Oaf's picture

Let me know when the Nig count drops. Especially the one residing in the white house

Kirk2NCC1701's picture

"Rig Count Drops"

It's ALL Rigged. Ask Citi and the Saudis.

Rigged for a Hostile Takeover by KSA, for 10 cents on the PetroDollar, and financed by Citi with "Money out of thin air".

/Don't you love how those oil/gas entrepreneurs are getting their investments (equity, bonds and loans) monkey-hammered by the "Money for Nothing and Checks for Free" crowd? Why, it's the American way! / sarc

KnuckleDragger-X's picture

Rig counts mean less than what most people think. The oil patch ain't magic and we are still above historic average. The Saudi's can flood the world market but with so many economies staggering around they'll have trouble selling it and they aren't making any friends among the other OPEC producers. What oil will do the the next 3-5 years is anybodies guess but I get the feeling that even with oil, the middle east is going back to the good old days of goat herders and gun toting maniacs like it used to be before they discovered oil there.

venturen's picture

they keep telling us that...but all the oil companies keep gaining....which is it? XOM is up 10 FOLD 1000% since 1986?

withnmeans's picture

T. Boone was right. He said watch the Rig count a month or so ago, he knew it was going to tank.

KnuckleDragger-X's picture

T. Boone is the George Soros of the oil patch.......

greyghost's picture

well I hope for gods sake that t. boone knows his own business. rocket science from the same person pushing natural gas for eighteen wheelers about eight years ago. he was on tv every other day endless talking up his natural gas wells. are there natural gas trucks out there...yes....just not the nirvana he wanted.

scubapro's picture

 

 

given how much diesel costs one would think there would be tons of nat gas fueled trucks out there...and there are, only they are local delivery trucks...no nat gas infrastructure yet.    t bone should take a note from musk and buy into flying J to put in nat gas fuel....or better yet,  propane.

 

propane is everywhere, hardware stores, gas stations etc., and total idiots hook them up right next to their houses and leave them outside in the weather...attached to their grills!    transform your car to run on propane and voila....oil at $10 forever and muslims can shoot each other all they want and we can stay out of it.

sun tzu's picture

NG vehicles have about 25% the range of diesel for the same sized tank, which isn't ideal for long haul trucks. They would have to stop four times as often to refuel. Besides, is there a network of CNG stations for them to refuel as they drive across the country? Maybe more practical for local delivery trucks like UPS, Fedex, and USPS. You can't just use regular NG or propane. It has to be compressed. 

maskone909's picture

jim rogers and t-bone, sometimes they seem related

Consuelo's picture

"...the fastest drop since 1986."

Hey man, isn't that like way past Lehman...?

sun tzu's picture

After the 1980's crash, it took oil 20 years to recover

ebworthen's picture

Somehow this will be spun as bullish; more EBT income for Walmart?

VIX slam, FED chair babbling something, a "new deal" for Greece. 

Something, anything, to keep people in the casino.  Free drinks?

KnuckleDragger-X's picture

The casino is huge and there are no windows so you never have to see the real world.....

disabledvet's picture

Wall Street suicide.

 

Production will continue to soar and they'll be sitting on trillions in stranded capital and busted trades.

 

Oil at two bucks a barrel here we come.