Large drop in gas rigs: rigs drilling for natural gas is 53% lower than gas rig count at the end of 2014
The total number of rigs drilling for oil and gas in the United States hit 700 in the week ended December 23, 2015, down nine rigs from the previous week. The data collected by Baker Hughes (ticker: BHI) showed losses in rigs drilling for natural gas led the decline last week.
The number of rigs drilling for oil fell by three last week, reaching 538 after several rigs were added in the week ended December 18. The fall in the oil rig count this week could signal that the trend of fewer rigs in the oil patch could continue the steady decline that started in September after slight increases in July and August.
The majority of the lower rig count came from those drilling for natural gas, however. The number of rigs drilling for natural gas fell by six to 162 last week, after a drop of 17 in the week ended December 18. The number of rigs drilling for natural gas is now 53% lower than where it was at the end of 2014.
The Canadian rig count also saw a tremendous drop last week, with BHI reporting 36 fewer rigs in Canada week-over-week. The 36 rig decline represents a loss of 23% of the Canada’s rigs in just one week. The Canadian rig count totaled 126 in the week ended December 23, down 51 rigs from where it started the month.
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