U.S. Oil Rig Count Update – 2/3/21
According to Baker Hughes, U.S. oil rig counts rebounded to a nine month high level during the week ending Jan 29th but remained significantly lower on a YOY basis. Jan 29th week ending oil rig counts increased 2.1% from the previous week but remained 56.3% lower on a YOY basis and 66.8% below the three and a half year high levels experienced during November of 2018. Oil rig counts have increased over 18 of the past 19 weeks through the week ending Jan 29th. 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 off of recent lows but remain 30% below the Oct ’18 highs during the week ending Jan 29th. Crude oil production volumes remained 17% below the Mar ’20 record high levels during the week ending Jan 29th while oil production per rig declined to a nine month low level but 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
Jan 29th Oil Rig Counts Increased 2.1% Week-Over-Week but Remained 56.3% Lower YOY
Oil Rigs Have Increased Over 18 of the Past 19 Weeks Through the Week Ending Jan 29th
Horizontal Rigs Have Accounted for 98% of the Rebound in Total Rigs Since Mid-August
Jan 29th Crude Oil Production Remained 17% Below the Mar ’20 Record High Levels
Jan 29th Crude Oil Production per Rig Declined to a Nine Month Low Level