US rig count falls to five-year low

Houston, 13 March (Argus) — The US rig count fell by 67 for the 14th consecutive week to 1,125, the lowest level seen since 2009, according to data released today from oil field services company Baker Hughes.

The US rig count has fallen by 686 since the start of the year, a decline of 38pc.

The rig count is watched as a signal on future supply, a key issue amid high inventories and low crude prices. Crude prices have fallen 50pc since June, prompting companies to slash budgets, lay off workers and reduce rig counts.

The number of rigs drilling for oil fell by 56 to 866 this week. The number of rigs drilling for gas fell by 11 to 257.

Rigs drilling on land fell by 64 to 1,069, while rigs drilling offshore fell by three to 48.

The number of rigs drilling horizontally – a method to unlock shale crude – fell by 46 to 849. Vertical rigs fell by 11 to 166.

The Canadian rig count fell by 80 to 220. The North American rig count fell by 147 to 1,345.

By state, Texas shed 37 rigs to 501, while Louisiana shed seven rigs to 93. North Dakota cut four rigs to 101, and Oklahoma cut five rigs to 134. Ohio also lost 4 rigs for a total of 31.

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