U.S. Active Rig Count Falls to 406

by Elizabeth Alford on May 17, 2016

Oil and gas producers across the United States have idled more rigs this week and sink to record lows.

Related: Eagle Ford Rig Count Dips Again

Baker Hughes released its weekly rig report on Friday, showing a total of 406 oil and gas rigs were running across the United States this week, down nine from last week. Of this number, 87 rigs targeted natural gas (one more than the previous week) and 318 were targeting oil, (10 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)

These totals are the lowest since Baker Hughes started keeping records in 1940s. The counts have been falling steadily since oil prices plummeted in the fall of 2015. This time last year, there were 888 active rigs.

  • Permian Basin:  fell by five to 134
  • Williston Basin: fell by one rig to 24
  • Marcellus: Remained flat at 26
  • Haynesville: fell gained 1 to 13
  • Eagle Ford Shale: fell by 1 to 34

Among major oil- and gas-producing states, Texas declined by seven rigs, Louisiana was down three and North Dakota, Oklahoma and Wyoming each fell by one.

Companies have sidelined rigs as an effort to save money during the difficult industry downturn. Once prices are in a profitable range, companies will begin making rigs active again, starting with their inventories of drilled but uncompleted wells (DUCs).

Read more at bakerhughes.com

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