Rigs record largest drop in nearly three years
U.S. drilling activity is responding to the recent decline in oil prices, with drilling activity dropping sharply in the week according to Baker Hughes.

A net 25 rigs came offline in the U.S. this week, the largest single-week drop since early 2016. There are now 1,050 rigs active in the country, the lowest national rig count in over four months.

This drastic shift is almost certainly the industry’s response to the recent oil price drop, which began in early October. This also indicates rig counts have more rapidly responsive to oil prices, as it has been approximately 15 weeks since the price downturn began. During the 2014-2016 downturn, rig counts typically took about 17 weeks to respond t...

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