U.S. Oil Rig Count Update – 12/8/21
According to Baker Hughes, U.S. oil rig counts remained at a 19 month high level during the week ending Dec 3rd. Dec 3rd week ending oil rig counts were unchanged from the previous week while finishing 89.8% above previous year levels. Oil rig counts remained 29.6% below pre-pandemic seasonal levels and 47.4% below the three and a half year high levels experienced during November of 2018, however. The current rebound in oil rig counts has been slower than rebounds from cyclical lows experienced throughout both 2009 and 2016.
Oil rig counts declined sharply throughout the first half of 2020 in response to lower WTI crude oil prices. More recently, WTI crude oil prices rebounded to a seven year level during the final week of October, prior to declining 20% since.
Crude oil production volumes reached a 15 month high level during the final week of August, prior to returning to a six month low level during the first week of September, a result of declines associated with Hurricane Ida. Crude oil production levels rebounded to a 19 month high level throughout the week ending Dec 3rd while oil production per rig remained near recently experienced 19 month low levels.
Oil Rig Counts Followed Crude Oil Prices Lower Prior to Rebounding Throughout 2021
Dec 3rd Oil Rig Counts Remained Unchanged Week-Over-Week, Finishing 89.8% Higher YOY
Oil Rig Counts Have Increased Over 25 of the Past 31 Weeks Through the Week Ending Dec 3rd
The Current Rebound in U.S. Oil Rig Counts Remains Slower Than Previous Cycles
Horizontal Rigs Have Accounted for 94% of the Rebound in Total Rigs Since Aug ’20
Dec 3rd Crude Oil Production Volumes Rebounded to a 19 Month High Level
Dec 3rd Crude Oil Production per Rig Remained Near Recent 19 Month Low Levels