US Oil Rig Count Lowest Since 2010

Posted by Eric Haun
Friday, January 08, 2016
The U.S. oil rig count this week dropped to the lowest level in over five years as energy firms stepped up the rate of idling rigs after one of the worst years in almost 30 years for drilling, data showed on Friday.
 
Drillers removed 20 oil rigs in the week ended Jan. 8, bringing the total rig count down to 516, the least since April 2010, oil services company Baker Hughes Inc said in its closely followed report.
 
That was the seventh decrease in the past eight weeks and brings the total rig count down to about a third of the 1,421 oil rigs operating in same week a year ago.
 
In 2015, drillers idled a total of 963 oil rigs, the first annual cut since 2002 and the biggest annual decline since at least 1988, according to Baker Hughes.
 
Over the prior five years (2010-2014), producers added on average 216 oil rigs per year. In 2015, however, they cut on average 18 oil rigs per week.
 
U.S. crude prices dropped 30 percent last year and 10 percent in the first week of the year to near 12-year lows around $33 a barrel on Friday on persistent global oversupply worries and a bleak demand outlook. 
 
"Daily fluctuations in oil prices do not have an immediate effect on rig count changes," said Chris Kostas, senior power and gas analyst at Energy Security Analysis Inc.
 
"But persistently lower prices do effect the trend to reduce drilling activity over time," Kostas said.
 
U.S. crude futures were trading at higher levels around $38 a barrel for the rest of 2016 and $43 for 2017, which some analysts have said could entice producers to return to drilling later this year.
 
One of the biggest U.S. independent drillers Pioneer Natural Resources Co said this week its preliminary 2016 production growth forecast was 10 percent to 15 percent compared with 2015.
 
Pioneer said it continues to forecast compound annual production growth of 15 plus percent over the 2016 through 2018 period, assuming the addition of two rigs to three rigs per year during 2017 and 2018.
 
This week drillers cut four oil rigs in the Bakken in North Dakota and Montana to 49, the lowest rig count in the basin since at least 2009.
 
U.S. natural gas rigs, meanwhile, fell by 14 this week, knocking the overall oil and gas rig count to 664, the lowest since August 1999.
 
 
(Reporting by Scott DiSavino; Editing by Marguerita Choy)

People & Company News

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

MN100: Klüber Lubrication NA LP

The Company: Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide.

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

Offshore

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Cathelco MGPS for Latest Lamprell-built Jack-up

Cathelco will provide a marine growth prevention system (MGPS) for the latest in a series of jack-up drilling rigs to be built by Lamprell, the UAE based  leading provider of fabrication,

New System Monitors Vessel Motion, Impact

UK Electronic Solutions (part of NSSLGlobal Group), has announced Oceanic Dynamics, a new self-contained motion and impact monitoring system suited to offshore vessels.

Finance

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Hanjin Shipping to Submit Self-Rescue Plan

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media.

Energy

South Africa Workshop Promotes Ship Energy Efficiency

An International Maritime Organization (IMO) workshop is raising awareness of the Organization’s regulatory regime dealing with improving energy efficiency and

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Pressure Mounting on VLGCs Rates - Drewry

A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.

News

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Hanjin Shipping to Submit Self-Rescue Plan

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media.

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

Offshore Energy

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Cathelco MGPS for Latest Lamprell-built Jack-up

Cathelco will provide a marine growth prevention system (MGPS) for the latest in a series of jack-up drilling rigs to be built by Lamprell, the UAE based  leading provider of fabrication,

US Oil Drillers Add Rigs for 8th Week in Row

U.S. drillers this week added oil rigs for an eighth consecutive week, the longest recovery streak in the rig count in over two years, as crude prices rebounded

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1474 sec (7 req/sec)