Monday, January 12, 2015

The Plunging Oil Rig Count

The U.S. oil boom is over. Now comes the collapse.

Last week, week-to-week, rigs dropped by 29 to 810. The count is now down 95 rigs, or 10.5%, from the peak of 905 rigs on November 21.

North Dakota, the second largest oil-producing state, lost 7 rigs last week. Its 162 rigs are also down 10.5% from its peak in mid-November.

This is only the beginning. Barclays’ analyst Dave Anderson estimates that at least 500 rigs could be idled in the U.S. by the end of the year. Raymond James analyst Praveen Narra said that his firm estimated that up to 850 rigs could be idled this year.

(ht Business Insider)

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