U.S. Oil Rig Count Update – 2/1/17
According to Baker Hughes, U.S. oil rig counts have increased over 12 of the past 13 weeks through the end of January. Oil rig counts increased to a 14 month high during the week ending Jan 27th, finishing 79.1% above the lows experienced during May ’16. Crude oil production increased to an eight month high during recent weeks however production per rig finished at a 15 month low during the week ending Jan 27th. Crude oil production is expected to continue to increase slightly throughout coming months according to drilling productivity estimates compiled throughout areas accounting for 95% of recent production gains.
U.S. Oil Rig Counts Declined in Response to Depressed Crude Oil Prices
U.S. Oil Rig Counts Peaked in Late 2014, Prior to the Recent Declines
Jan 27th U.S. Oil Rigs up 2.7% From the Previous Week and 13.7% YOY
The Recent Decline in U.S. Oil Rig Counts Since the Nov ’14 Peak has Been Significant
Declines in U.S. Oil Rig Counts Have Decelerated Since Early 2015
Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis
Jan 27th Crude Oil Production off of the Two Year Lows but Remains Down 3.2% YOY
Jan 27th Production per Rig Declined to a 15 Month Low
Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas