Active Rig Count - May 6

[dan_s]

The number of rigs drilling for oil & gas in North America dropped by another 6 last week. Each week sets a new record low (since Baker Hughes has been tracking the rig count for more than 70 years). North America down to 451, from 969 a year ago.

United States:
> Rigs drilling for oil down 4 to 328, from 1,609 in October 2014 and 668 a year ago.
> Rigs drilling for gas down 1 to 86, from 221 a year ago.

Canada down 1. Only 11 rigs drilling for oil and 24 drilling for gas.

See charts: http://www.zerohedge.com/news/2016-05-0 ... ecord-lows

This has devastated the oilfield services sector. If oil prices went to $100 tomorrow, it will take over a year for the oilfield services companies to recover. This is why this cycle, like every cycle before, is going to over-shoot. A year from now we'll be talking about an oil supply shortage.