At 374, US rig count sets new record low

Kristen Nelson

Petroleum News

The count of rotary rigs drilling in the U.S., issued weekly by Baker Hughes since 1944, bottomed out the week ending May 8 at 374. The previous low count, 404, was in May 2016.

The May 8 count was down 34 from 408 the previous week and down 614 from a year ago.

The count continues a recent steep drop: down by 34, 64, 73, 62, 64, 44 and 20 rigs respectively, a total of 361, over the previous seven weeks.

In its weekly rig count the Houston oilfield services company said 292 rigs targeted oil, down 33 from the previous week and down by 513 from a year ago, while 80 targeted natural gas, down one from the previous week and down 103 from a year ago. There were two miscellaneous rigs active, unchanged from the previous week and up by two from a year ago.

The company said 27 of the holes were directional, 338 were horizontal and nine were vertical.

New Mexico (70) was up by four rigs from the previous week.

Rig counts were unchanged in Alaska (3), California (5), Colorado (8), Pennsylvania (23), West Virginia (7) and Wyoming (4).

The rig count in Texas, which at 173 has the most active rigs, was down by 28 from the previous week and down by 312 from a year ago.

North Dakota (20) was down by six rigs.

Oklahoma (13) was down by two rigs.

Louisiana (38) and Ohio (8) were each down by one rig from the previous week.

Baker Hughes shows Alaska with three active rigs for the week ending May 8, down by six from a year ago.

The largest rig count drop by basin was in the Permian, which also has the most active rigs at 198. The Permian count was down 21 from the previous week and down 259 from a year ago.

Baker Hughes has issued weekly rig counts for the U.S. and Canada since 1944 and began issuing international rig counts in 1975.

The U.S. rig count peaked at 4,530 in 1981 and previously bottomed out in May 2016 at 404. The 374 count for the week ending May 8 is a new low.

- KRISTEN NELSON