Baker Hughes reported on Friday that the number of oil and gas rigs in the US fell again this week, by 1, to 265, suggesting that while the number of active rigs in the United States continues to decline, it is doing so at a slower rate than in previous weeks.
The total oil and gas rigs is now sitting at 702 fewer than this time last year.
The number of active rigs in the United States has continued to decline over the last sixteen weeks.
The number of oil rigs decreased for the week by 1 rig, according to Baker Hughes data, bringing the total to 188—compared to 793 active rigs this time last year.
The total number of active gas rigs in the United States held fast at 75 according to the report. This compares to 173 rigs a year ago.
Unlike in 2019 when rig count decreases were due to efficiency gains, the most recent sharp and extended decrease in the rig count over the last couple of months is borne out in EIA’s estimate for oil production in the United States, which rose for the first time in eleven weeks for week ending June 19, at 11 million barrels of oil per day. While still 2.1 million bpd off the all-time high for US production, it is 500,000 bpd higher than the previous week as demand improves with the easing of lockdowns across much of the United States.
Canada’s overall rig count fell this week by 4 to just 13 active rigs. Oil and gas rigs in Canada are now down 111 year on year.
At 9:18 am, WTI was trading down 0.77% at $38.42 on the day and down $1.50 per barrel week over week. The Brent benchmark was trading down 0.27% at $40.94 on the day—also roughly $1.50 per barrel down from this time last week.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
- Oil Market Optimism Is Entirely Misplaced
- Inside Singapore's $3 Billion Oil Trading Scandal
- How Viable Are Net Zero Strategies For Energy Companies?