Active Rig Count - April 24

[dan_s]

Baker Hughes reported today that the North American Active Rig count dropped by another 23 to 1,011. The number of rigs drilling for oil in the United States is now 703. At the beginning of the year, I predicted we would see the number of rigs drilling for oil drop to 600 by the end of June. I still think that will happen. At this level of drilling and more companies delaying completions, U.S. oil production has started to decline and the rate of decline will accelerate this summer. The U.S. was producing 9.4 million barrels per day of crude oil a couple of months ago. U.S. production will be under 9.0 million BOPD within a few months. I think U.S. production could be approaching 8.5 million BOPD by year-end.

The Canadian rig count is now down to 79. Incredible!

Ten month ago, in October, 2014 there were over 1,600 rigs drilling for oil.

For details see: http://phx.corporate-ir.net/phoenix.zht ... portsother

For IEA's increasing demand forecast see: https://www.iea.org/oilmarketreport/omrpublic/