From Staff Reports
The number of U.S. rigs drilling for oil and natural gas continued to fall in the past week, Baker Hughes said in its weekly report. Texas lost one.
The Houston oilfield service company’s data showed three rigs exited the oil patch, partially offset was offset by a two-rig increase in the number of gas rigs at work. That dropped the combined count by one to 802, down 274 from the same week a year ago.
For oil rigs, it was the 13th decrease in the past 15 weeks.
Baker Hughes released the data Wednesday ahead of the Thanksgiving holiday.
The total number of active oil rigs now is 668. The number of active gas rigs was 131.
By state, Texas lost one rig to 405. It now has seen the number of rigs at work fall 126 year from a year ago. Oklahoma also dropped one, leaving 51 at work. It’s down 94 for the year.
Louisiana gained one rig, to 57. It’s down eight rigs for the year.
Outside of a two-rig decline in North Texas’ Barnett Shale — which left just two rigs standing there — counts were flat in all major plays in Texas.
Oklahoma’s DJ-Niobrara lost one, to 21.
Even as the number of oil rigs working has fallen by 209 this year, production has continued to increase. According to the latest government data, production has risen from 11.7 million barrels per day at the start of 2019 to an all-time high of 12.9 million barrels per day in the most recent week.
Canada’s overall rig count also decreased in the past week, with oil and gas rigs falling by 11. Oil and gas rigs in Canada now stand at 126, down 73 year on year.
U.S. crude oil was down more than 3 percent Friday morning to about $56 per barrel. Brent crude, the international benchmark, was down about 2 percent, to less than $63.
Both benchmarks were headed for fourth-straight weekly gains before a key OPEC+ meeting this week that will set the path for future production cuts.