Numerous oil & gas rigs drop to record lows

Published:

On: Jun 2020

The United States and Canadian energy companies decline the number of oil & natural gas rigs working to a record low even though the high oil prices indicate some distributors to begin drilling again. American oil & natural gas rigs count, an early sign of future outcome, dropped to a record low for a 7th week in a row, declining by 13 to 266 in the week to 19th of June, according to the recently released data.  The United States oil rigs decreased 10 to 189 this week, their slowest record since June 2009, while, gas rigs declined by 3 to 75.

Over the half of the whole United States oil & natural gas rigs are in the Permian basin in West Texas & eastern New Mexico, where active units fell by five in this week to 132, registering a record low set in April 2016. Even though the US crude futures are still decline around 35 % since the commencing of the year due to the COVID-19 demand downturn, they have climbed 133 % over the last eight weeks to more than $39 US per barrel.

The shale producers of the United States are anticipated by the end of June to restore around a quarter of what they close since the coronavirus pandemic impacted prices. Some analysts stated that they assume higher oil prices will motivate energy companies to slow rig count plunges and include some units later in the year 2020.