On Friday, energy services company Baker Hughes Co. reported the US oil and gas rig counts dropped to a record low for the 10th consecutive week. Still, the decline rate has slowed as some producers have restarted drilling due to the higher oil prices.
In the week ended July 10, the US oil and gas rig count slumped by 5 units to 285 units, the lowest since the data started in 1940. The slump was recorded as 73% year-on-year.
Oil rigs went down by 181 units, the lowest since June 2009. Gas rigs nosedived by 75 units.
The Permian basin posted a record low active unit count of 125, according to data since 2011.
Going forward, the US Energy Information Administration (EIA) estimated the domestic crude output to slump to 11.6 million bpd in 2020 from 2019’s record 12.2 million bpd.
The global consumption of petroleum and other liquid fuels would plunge to 92.9 million bpd this year from last year’s record of 101.0 million bpd.
Analysts estimated the decline of operating rigs count would slow as oil prices are improving. Some units would probably start operating later this year.
