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U.S. OIL RIG COUNT FALLS TO LOWEST LEVEL SINCE 2019

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U.S. Oil Rig Count Falls To Lowest Level Since 2009

By Julianne Geiger - Aug 07, 2020, 12:17 PM CDT

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Baker Hughes reported on Friday that the combined oil and gas rig count in the U.S. fell this week by 4, to 247.

The total oil and gas rigs are down by 687 compared to this time last year.

The number of oil rigs slipped for the week by 4 rigs, according to Baker Hughes data, bringing the total to 176, compared to the 764 active oil rigs this time last year.  Two of those four rigs lost this week were in the Permian Basin.

The total number of active gas rigs in the United States stayed the same at 69 total rigs. This compares to 169 rigs a year ago.

To compare active rigs with supply figures, the EIA’s estimate for oil production in the United States fell for the week ending July 31—the last week for which there is data, at 11 million barrels of oil per day. Oil production in the United States is 2.1 million bpd less than its all-time high reached earlier this year.

Canada’s overall rig count rose this week by 2, reaching 47 active rigs. Oil and gas rigs in Canada are now down 93 year on year. 

The Frac Spread Count in North America, provided by Primary Vision, has been trending higher in recent weeks, driven mainly by a modest increase in activity in the Permian.

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CORRECTION SINCE 2009

[JanetaBridge]

Will this result in a long term production loss? How long does it take to bring one of those oil rigs back on?

[Sexp1stol]

Basically to bring an oil rig back online it takes about a year. And it's normally too expensive so it's not happening before oil at 60$. Problem with associating oil rigs with production is that very few rigs bring most of the production and this will result in 2mbd loss for at least 2 years but US oil production will stay slightly above 10mbd for 2020

[2020oilgamble]

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