U.S. Oil Rig Count Update – 3/24/21
According to Baker Hughes, U.S. oil rig counts rebounded to a ten month high level during the week ending Mar 19th but remained significantly lower on a YOY basis. Mar 19th week ending oil rig counts increased 2.9% from the previous week but remained 52.1% lower on a YOY basis and 64.2% below the three and a half year high levels experienced during November of 2018. Oil rig counts have increased over 23 of the past 26 weeks through the week ending Mar 19th. 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 rebounded to a 28 month high level during early Mar ’21 but remained 16% below the Oct ’18 highs during the week ending Mar 19th. Crude oil production volumes have rebounded from the three year low levels associated with deep freeze related slowdowns but remained 16% below the Mar ’20 record high levels during the week ending Mar 19th. Oil production per rig remained historically high, finishing above recently experienced nine month low levels. 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
Mar 19th Oil Rig Counts Increased 2.9% Week-Over-Week but Remained 52.1% Lower YOY
Oil Rigs Have Increased Over 23 of the Past 26 Weeks Through the Week Ending Mar 19th
Horizontal Rigs Have Accounted for Over 98% of the Rebound in Total Rigs Since Mid-August
Mar 19th Crude Oil Production Remained 16% Below the Mar ’20 Record High Levels
Mar 19th Crude Oil Production per Rig Remained Above Recent Nine Month Lows