Biweekly U.S. Oil Rig Count Update – 6/2/16
According to Baker Hughes, U.S. oil rig counts continued to decline throughout the second half of May, reaching a new six and a half year low during the week ending May 27th. Crude oil production has declined from recent high output levels however production per rig continues to increase, finishing near six and a half year high figures during the week ending May 27th. The trend of declining crude oil production is expected to continue as drilling productivity estimates show declining production in coming months 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
May 27th U.S. Oil Rigs Declined 0.6% From the Previous Week and are Down 51.1% 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
Crude Oil Production Has Declined From Recent Peak Output Levels, Down 8.9% YOY
May 27th Crude Oil Production per Rig Finished Near Six and a Half Year High Figures
Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas