Matt Zborowski
Staff Writer
The US drilling rig count fell 56 units-41 of which targeted oil-to settle at 1,069 rigs working during the week ended Mar. 20, capping off the 15th consecutive week in declines, according to data from Baker Hughes Inc.
Since the week ended Dec. 5, the rig count has plunged 851 units (OGJ Online, Dec. 5, 2014). The total of 1,069 is the lowest since the week ended Oct. 30, 2009, and 734 fewer units compared with this week a year ago.
The US Energy Information Administration noted this week in its "Today in Energy" update that the last major rig count drop during the 2008-09 recession had little impact on overall oil production because of rig efficiency.
"When producers make the decision to lay down some drilling rigs, they generally start by idling the older, least-efficient ones first," EIA said. "The effect on production depends on the productivity of the remaining rigs."
The 2008-09 plunge was "more than offset by increases in the productivity of remaining rigs, as those more productive rigs required fewer days to drill and complete a well, had higher initial production rates, and were more able to drill multiple horizontal wells from a single pad."
EIA said, however, that "because the base level of rig performance is so much higher now than several years ago, it is not clear that productivity gains will offset rig count declines to the same degree as in 2008-09."
Offshore rigs plunge
Oil rigs now total 825, down 750 units since Dec. 5 and 648 units year-over-year. Gas rigs shed 15 units to 242. Rigs considered unclassified were again unchanged at 2.
Down 11 units to 37, offshore rigs experienced their largest 1-week decline since the week ended June 4, 2010, when the total was halved to 24 in the wake of the deepwater Macondo oil spill. The total of 37 is the fewest since the week ended Nov. 25, 2011.
Rigs drilling in inland waters were down 6 to just 2 rigs working.
