Active Rig Count continues to fall - May 1

[dan_s]

The active drilling rig count in the U.S. declined another 57 rigs last week to just 408. In the last five weeks it has declined by 320 rigs or 44%.
Year-over-year the active rig count is down 582 or 59%. < This HAS NEVER HAPPENED and it will continue to fall.

Two months ago, I guessed that the active U.S. rig count might fall to 400. Now I think it may fall below 200. < This will devastate the oilfield services sector.

My guess is that more than half the wells being drilled today will not be complete this year, so completion equipment and crews are falling even faster.

If the active rig count stays around 200 all summer, it will be very difficult to ramp back up once oil prices do rebound. The supply chains and logistics are much more complex in the shale plays.

Baker Hughes also reported that the international rig count declined by 144 rigs to 915 in April. It will keep falling as well.