The worldwide rig count ended January at 3,309, down 261 from December but it is the US and Canada that is dominating that collapse. Following last week's all-time record absolute drop of 94 rigs (over 7%, most since APR09), the oil rig count dropped for the 9th week in a row (down another 83 to 1140 rigs - down 27% in last 9 weeks) as it tracks the 4-mo lagged oil price perfectly. The Permian basin saw the biggest cut in rig count. This is the lowest oil rig count since Dec 2011 (down 19.5% YoY) and lowest total rig count in the US since March 2010 - down 25% in the last 9 weeks). Hopes of production cuts are simply wrong as the last 4 times that rig counts have dropped, no production cuts have occurred.
- *U.S. TOTAL RIG COUNT -87 TO 1,456, BAKER HUGHES SAYS
- *U.S. OIL RIG COUNT -83 TO 1,140, BAKER HUGHES SAYS
Breakdown:
- *ENERGY RIGS IN PERMIAN BASIN DROP 37 TO 417: BAKER HUGHES
- *ENERGY RIGS IN WILLISTON BASIN FALL 11 TO 137: BAKER HUGHES
- *ENERGY RIGS IN TEXAS'S EAGLE FORD DOWN 10 TO 168: BAKER HUGHES
- *ENERGY RIGS IN MARCELLUS FORMATION DROP 4 TO 71: BAKER HUGHES
West Virgina has seen its rig count collapse almost 50% from the peak.. and Pennsylvania is actually higher!
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Rig count continues to crater...
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Heading into the rig count data, WTI Crude was pushing higher (on Greek downgrade news? lol) and is slumping post...
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And do not expect production to slow any time soon..
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Charts: Bloomberg
