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
- *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!
Rig count continues to crater...
Heading into the rig count data, WTI Crude was pushing higher (on Greek downgrade news? lol) and is slumping post...
And do not expect production to slow any time soon..