Rig Count Update - March 6

[dan_s]

Baker Hughes reports that the North American active rig count fell another 105 onshore rigs.
- 75 in the U.S. to 1,192, compared to 1,792 a year ago
- 30 in Canada to 300, compared to 587 a year ago

My original guess was that the onshore U.S. rig count would drop to 1,000 sometime in Q2. I now think it will drop below 900.

Go here to see the full report: http://phx.corporate-ir.net/phoenix.zht ... portsother

In addition to the rapidly falling rig count, many large-caps now saying they will drill wells, but not complete them until oil prices improve. EIA is now predicting that U.S. onshore production will be on decline in Q3.