Rigs by Oil Play

Rigs by Oil Play

Oil Rigs Reach New Five-Year Low

A few months ago, speculation of a rig count trough offered promise of the oil industry bottoming out. Since then, oil prices seem to have stabilized, but rig counts are a different story.

The number of running domestic rigs fell for the sixth straight week on October 2, 2015, reaching 809. Of the 29 rigs set down in the fleet, 26 were oil-focused. Eight of the rigs were running in Oklahoma, dropping the Sooner State below the century mark for the first time since December 2009. Texas lost six rigs, while Louisiana and New Mexico each dropped four.

The United States rig fleet has declined by 76, or about 8.6%, during its six week slide. The reduced operations lend further optimism to a potential oil price rebound amid a market with possible reduced production. Even OPEC production fell slightly in September, adding just a bit of relief to a market that has been oversupplied for months.

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