The North American active rig count fell by another 136 to 1,209, compared to 2,192 a year ago. We'll be under 1,000 in a couple weeks.
The number of rigs drilling for oil in the U.S. is now down to 825. My guess is that it drops near 600 by the end of April.
The Canadian rig count is now 140, compared to 389 a year ago.
Oil production from the Bakken, Eagle Ford and Niobrara is already on decline. Onshore U.S. oil production is expected to be on decline sometime in the 2nd quarter. My guess is that global oil production will be on decline by year-end.
IEA is forecasting that global demand for refined products will increase by 2 million bbls per day between now and year-end. See: https://www.iea.org/oilmarketreport/omrpublic/
Baker Hughes weekly rig count report: http://phx.corporate-ir.net/phoenix.zht ... portsother
Active Rig Count - March 20
Active Rig Count - March 20
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Active Rig Count - March 20
The number of onshore rigs drilling for oil peaked at more than 1,600 in Q3, 2014. In six months we've seen it almost cut in half and it will continue to fall until oil prices firm up.
The sad part of this is the number of jobs that have been lost. It is a lot easier to lay down rigs than it is to put them back to work. Therefore, once U.S. oil production goes on decline it will be very difficult to reverse the trend.
The sad part of this is the number of jobs that have been lost. It is a lot easier to lay down rigs than it is to put them back to work. Therefore, once U.S. oil production goes on decline it will be very difficult to reverse the trend.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group