Total U.S. rig count falls by 1%
The total U.S. rig count fell by just three rigs in the week ended April 15, 2016, a decline of 1%. The three rigs laid down this week were all oil-seeking rigs, with the total number of oil rigs now at 351. The number of rigs targeting gas remained unchanged at 89.
On a state-by-state basis, Texas lost three rigs this week, while Alaska, North Dakota, Pennsylvania and Wyoming each reported one fewer rig this week compared to one week ago. New Mexico reporter two additional rigs this week, while Kansas and Louisiana reported one added rig.
The Canadian rig count declined by one this week. The total rig count in Canada now stands at 40, down 42% from this time last month.
U.S. crude oil benchmark WTI remained above $40 per barrel today, but it remains to be seen what effects the meeting of OPEC and non-OPEC producers will have on prices over the weekend. U.S. production fell below 9 MMBOPD for the first time since 2014 this week, but global production continues to outstrip demand.
For a stark reminder of the cyclical nature of the oil business, the total U.S. working rig count for this same week in 2014 was 1,831. Today’s total represents a 76% decline from then.
