US Oil Rigs Resume Slide, Drop By 15 In Past Week To New Record Low

Tyler Durden's picture

After posting the smallest possible rebound in the past week, moments ago Baker Hughes reported that in the holiday shortened week (in which there was some extrapolation) the decline in US oil rigs has resumed, and as of this moment there were only 372 oil rigs operating in the US, down 15 weekly and the biggest drop in the past moth, to the lowest number in recent history.

 

Offsetting the drop in oil rigs was a modest increase in nat gas rigs which rose by 3 in the past week; the result was that the drop in total US rigs was -12 to 464, a new record low in this 41 year-old series.

Considering the relentless collapse in rigs and its historical delayed correlation with US oil production, the latter better slide soon or else some may ask if there is something more to this data set than meets the eye.

Some further breakdown:

  • OIL RIGS IN CANA WOODFORD FALL BY 3 TO 31, BAKER HUGHES SAYS
  • OIL RIGS IN PERMIAN FALL BY 5 TO 145, BAKER HUGHES SAYS

WTI has staged a modest rebound on this latest negative (for US GDP as it means even less dollars are spent on capex) news, pushing it to intraday highs, about $1 higher from this morning's lows.

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Hohum's picture

No worries.  Just complete the drilled but uncompleted wells.  Just like last year.  People in the Bakken will tell you that worked out great.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Mar 24, 2016 12:20 PM

So much for those storage problems

KnuckleDragger-X's picture

They are still bringing already drilled holes into production, so this is gonna take awhile......

MadMike007's picture
MadMike007 (not verified) Mar 24, 2016 12:22 PM

OPEC Drowning the market is catching up, Radar a move in Bio stocks    http://goo.gl/yQajjH

NoWayJose's picture

I guess they covered their shorts / then loaded up on calls and long positions - so change the switch to UP and generate whatever stories or 'official' data you need to support your move.

Kaiser Sousa's picture

yeah and this must be the reason Chevron is one of the Stawks leading the comeback on the Dow.....

farcical.

 

kristian01's picture

so in the production vs. rigs chart, production is on a log scale... come on guys, try to be more subtle when you manipulate data.  sigh

chickadee's picture

Six good years of oil production from a fractured well? So production stays up and drilling comes to a standstill?

Hohum's picture

Search "Bakken oil statistics" and you'll find the likely answer is "no."  In about 13 months, barrels per day per well from 130 to 102.  Do you think that means six years of high production?