Active Rig Count continues to fall - Sept 27

[dan_s]

Baker Hughes reports that the number of rigs drilling in the U.S. declined by another 8 rigs last week.
6 less drilling for oil
2 less drilling for gas

Over the last 12 months
150 less drilling for oil (863 to 713)
43 less drilling for gas (189 to 143)

At the current active rig count it is impossible for U.S. oil production to come close to the lofty predictions being made by EIA. Natural gas production will increase as lots of wells that are flaring gas now in West Texas will be tied into new pipelines coming on-line. New LNG export facilities, new pipeline to Mexico and the winter heating season will absorb the new gas supply.