Domestic rig count sets third straight all-time low

HOUSTON (AP) — The number of rigs actively exploring for oil and natural gas in the United States fell by four to an all-time low of 558 Feb. 5. It’s the third consecutive week for the energy industry yardstick to reach a record low.

Until Houston-based Baker Hughes Inc. reported 588 working rigs three weeks ago, the company’s lowest rig count had been the 596 reported June 12, 1992.

Baker Hughes has kept track of the count since 1944. The tally peaked at 4,530 on Dec. 28, 1981, during the height of the oil boom.

The company says there probably are fewer rigs looking for oil and gas in the country now than at any time since the boomtown days of the early 1900s.

Suffering Asian economies, heavy production by oil-laden countries and the record-warm conditions of 1998 all have worked to create a perceived glut that has depressed prices and, in turn, exploration activity.

Of the rigs running nationwide this week, 125 were exploring for oil and 433 for gas. During the same week last year, 974 rigs were operating in the United States.

Of the major oil- and gas-producing states, Oklahoma gained five rigs, followed by Wyoming with two and New Mexico with one.

Texas declined by 10 rigs from the previous week and Louisiana fell by two. Alaska and California were unchanged.