Collapse in number of rigs continues despite historic global oil deal

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Baker Hughes reported on Thursday that the number of oil and gas rigs in the United States fell again this week from 62, falling to 602, with a total of 420 oil and gas rigs 420 fewer than at the same period last year.

In the past four weeks, the combined oil and gas platforms have lost a total of 190 platforms.

The number of oil rigs declined for the week by 58 rigs, according to data from Baker Hughes, bringing the total to 504, a loss of 329 rigs from year to year. It is the smallest number of active oil platforms since December 2016.

The total number of active gas platforms in the United States has decreased by 4 according to the report, to 96. This compares to 189 a year ago.

After remaining stable for most of this year so far, the strong downward trajectory of the number of active platforms in the past four weeks indicates that widespread home stay orders that have decimated oil demand have eventually overflowed on the number of platforms.

The EIA estimates for the week that oil production in the United States fell to 12.4 million barrels of oil per day on average this week, which is 600,000 barrels per day from the all-time high. This is the lowest production level since September of last year.

The number of rigs in the most prolific basin, the Permian, fell from 35 this week to 316, up from 464 rigs a year ago. It is the smallest number of oil platforms active in the basin since March 2017.

The WTI benchmark at 10:35 am was trading at $ 22.76 (-9.9%) per barrel, about $ 4 less than last week, despite OPEC having reached an agreement to reduce oil production of 10 million barrels per day.

The Brent benchmark was trading at $ 32.48 (-4.14%), down just over $ 1 a barrel from last week’s levels.

The total number of drilling rigs in Canada also decreased by 6 rigs this week, to a total of just 35 rigs. Oil and gas platforms in Canada are now down 31 years.

By Julianne Geiger for Oilprice.com

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