U.S. Oil Rig Count Update – 3/3/21
According to Baker Hughes, U.S. oil rig counts rebounded to a ten month high level during the week ending Feb 26th but remained significantly lower on a YOY basis. Feb 26th week ending oil rig counts increased 1.3% from the previous week but remained 56.6% lower on a YOY basis and 65.2% below the three and a half year high levels experienced during November of 2018. Oil rig counts have increased over 21 of the past 23 weeks through the week ending Feb 26th. Oil rig counts had declined over 24 of 27 weeks through mid-September.
Oil rig counts have declined in response to lower WTI crude oil prices, which have rebounded to a 21 month high level during the week ending Feb 26th but remain 17% below the Oct ’18 highs. Crude oil production volumes rebounded from the three year low levels associated with deep freeze related slowdowns but remained 24% below the Mar ’20 record high levels during the week ending Feb 26th. Oil production per rig declined rebounded from recent nine month low levels and remained historically high, overall. Crude oil production is expected to continue to slow throughout coming months according to drilling productivity estimates compiled throughout areas accounting for 95% of recent production gains.
Oil Rig Counts Peaked in Late 2014, Prior to Declining Sharply in Early 2015
Oil Rig Counts Followed Crude Oil Prices Lower Prior to Rebounding Throughout 2017-2018
Feb 26th Oil Rig Counts Increased 1.3% Week-Over-Week but Remained 56.6% Lower YOY
Oil Rigs Have Increased Over 21 of the Past 23 Weeks Through the Week Ending Feb 26th
Horizontal Rigs Have Accounted for Over 96% of the Rebound in Total Rigs Since Mid-August
Feb 26th Crude Oil Production Remained 24% Below the Mar ’20 Record High Levels
Feb 26th Crude Oil Production per Rig Rebounded From the Previous Week’s Nine Month Low