The U.S. rotary rig count from Baker Hughes was down 48 at 1,310 for the week of February 20, 2015. It is 461 rigs (26.0%) lower than last year. The number of rotary rigs drilling for oil was down 37 at 1,019. There are 406 fewer rigs targeting oil than last year. Rigs drilling for oil represent 77.8 percent of all drilling activity.
Three months after Saudi Arabia made clear it was going to let oil prices keep tumbling, the strategy is showing signs of working. U.S. drillers are idling rigs at a record pace, gutting investment plans and laying off thousands of workers.
The U.S. Energy Information Administration reduced its 2015 U.S. crude production forecast to 9.3 million barrels a day in February from 9.42 million in November. The EIA projects output will fall in the third quarter for the first time in four years.
Oil has rebounded 14 percent in February, following a drop of more than 50 percent since June, in part because of the decline in drilling, which signaled supply growth will slow. Lower prices also spurred demand from bargain hunters, putting European benchmark Brent crude on track for its first monthly gain since June.
Three months after Saudi Arabia made clear it was going to let oil prices keep tumbling, the strategy is showing signs of working. U.S. drillers are idling rigs at a record pace, gutting investment plans and laying off thousands of workers.
The U.S. Energy Information Administration reduced its 2015 U.S. crude production forecast to 9.3 million barrels a day in February from 9.42 million in November. The EIA projects output will fall in the third quarter for the first time in four years.
Oil has rebounded 14 percent in February, following a drop of more than 50 percent since June, in part because of the decline in drilling, which signaled supply growth will slow. Lower prices also spurred demand from bargain hunters, putting European benchmark Brent crude on track for its first monthly gain since June.
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| The U.S. rotary rig count from Baker Hughes was down 48 at 1,310 for the week of February 20, 2015. |
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