Rig Count Continues to Fall | Russell T. Rudy Energy LLC
“Rigzone” reports that the Baker Hughes oil rig count dropped again last week. This was the 12’th reduction in the last 13 weeks, and a decrease of 9 from the previous week. The oil rig count is now at 555, the lowest level since June, 2010, and about one third of where it was a year ago.
Generally, reductions in capital expenditures, personnel and drilling rigs will eventually lead to reduced production and supplies and eventually to higher prices. Last week, crude prices jumped briefly on news of the rig count reduction.
Operators cut back on the number of oil rigs in all four major shale oil basins. The largest reduction was in the Permian Basin of West Texas where 5 rigs were idled. The Niobrara Basin of Colorado and Wyoming, the Eagle Ford in South Texas, and the Bakken in North Dakota, all saw reductions of one rig each.
The gas rig count also fell by four last week, bringing the total rig count down to a 13 year low.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/141809/Baker_Hughes .
