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U.S. Rig Counts Drop Below 800

by Elizabeth Alford on October 12, 2015

The U.S. rig count fell by 14 last week, falling below 800 for the first time since 2002. There were 795 rigs running across the nation by midday Friday compared to over 19000 just  one year ago. A total of 189 rigs were targeting natural gas (six less than the previous week) and 605 were targeting oil in the U.S. (9 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 

Related: Eagle Ford Rigs Now Below 100

Related: Bakken Rig Count is at 64

The U.S. Energy Information Administration estimates domestic crude production declined by 120,000 barrels a day in September and projects it will fall to an average 8.86 million barrels a day next year from this year’s peak of 9.6 million barrels a day in April. The rig count increased slightly in July and August but after after oil prices dropped sharply producers began bringing rigs offline again.

U.S. Oil Production Capacity

 

Bankruptcies and restructuring are on the rise as independent oil and gas companies do what they can to survive. Data company, Factset, reports that capital spending exceeded cash from operations by about $32 billion in the first six months of the year and is quickly approaching the deficit of $37.7 billion reported for the whole of 2014.

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