The number of crude oil and natural gas rigs in the United States fell to its lowest on record, according to data from service provider Baker Hughes. The data showed that total active drilling rigs in the country were 339 during the week ended May 12, the lowest since the company began compiling the data in 1987.
The collapse in oil prices plays a significant role in the falling number of rigs in the US. The rig counts began to fall steeply in mid-March after the price crash took place. The total rig count has plunged by 56% (433 rigs) since March 17. Both oil- and natural gas-focused fields saw significant decreases in the number of rigs.
Since March 17, producers in the top three US crude oil-producing regions (the Permian, the Eagle Ford, and the Bakken) have taken 308 (71%) rigs out of service. In mid-March, 405 rigs operated in the Permian region, but the bumper fell by 57% to 175 rigs as of May 12. The rig counts in the Eagle Ford and Bakken regions fell by 64% and 69%, respectively, over the same period.
The number of drilling rigs has also fallen in natural gas-focused fields. Over mid-March to May 12, the top natural gas-producing regions (the Marcellus and the Haynesville) saw a 23% and 26% decline, respectively, in the number of their gas-directed rigs.
