Even though higher oil prices prompt some producers to start drilling again, US and Canadian energy firms cut the number of oil and natural gas rigs operating to a record low. Dropping by 13 to 266 in the week to June 19, the US oil and gas rig count fell to a record low for a seventh week in a row. That was 701 rigs or 72 percent below this time last year.
Falling 10 to 189 last week, US oil rigs fell to their lowest since June 2009. According to data going back to 1987, gas rigs dropped their lowest on record, falling by 3 to 75.
More than 50 percent of the total US oil rigs are in the Permian basin in West Texas and eastern New Mexico. Active units there dropped by 5 last week to 132, tying a record low set in April 2016.
Dropping 4, the oil and gas rig count in Canada fell last week to an all-time low of 17. That was 102 rigs or 86 percent below this time last year. Over the past eight weeks, US crude futures have jumped 133 percent to over $39 a barrel on Friday even though they are still down about 35 percent since the start of the year.
