U.S. Oil Rig Count Update – 12/22/21
According to Baker Hughes, U.S. oil rig counts reached a 20 month high level during the week ending Dec 17th. Dec 17th week ending oil rig counts increased 0.8% from the previous week while finishing 80.6% above previous year levels. Oil rig counts remained 30.7% below pre-pandemic seasonal levels and 46.5% below the three and a half year high levels experienced during November of 2018, however. The current rebound in oil rig counts has been slower than rebounds from cyclical lows experienced throughout both 2009 and 2016.
Oil rig counts declined sharply throughout the first half of 2020 in response to lower WTI crude oil prices. More recently, WTI crude oil prices rebounded to a seven year level during the final week of October, prior to declining 15% since.
Crude oil production volumes reached a 15 month high level during the final week of August, prior to returning to a six month low level during the first week of September, a result of declines associated with Hurricane Ida. Crude oil production levels rebounded to a 19 month high level throughout more recent weeks however oil production per rig declined to a 20 month low level during the week ending Dec 17th.
Oil Rig Counts Followed Crude Oil Prices Lower Prior to Rebounding Throughout 2021
Dec 17th Oil Rig Counts Finished up 0.8% Week-Over-Week and 80.6% YOY
Oil Rig Counts Have Increased Over 27 of the Past 33 Weeks Thru the Week Ending Dec 17th
The Current Rebound in U.S. Oil Rig Counts Remains Slower Than Previous Cycles
Horizontal Rigs Have Accounted for 94% of the Rebound in Total Rigs Since Aug ’20
Dec 17th Crude Oil Production Volumes Remained Near Recent 19 Month High Levels
Dec 17th Crude Oil Production per Rig Declined to a 20 Month Low Level