Rig activity drops as oil prices decline

Dean E. Gaddy Drilling Editor Rig activity continues to drop as a result of depressed oil prices. During July, the number of rigs drilling for oil and gas worldwide fell to 1,764, a 19% reduction from last year (Fig. 1 [40,542 bytes]). The worldwide rig count has not been this low since May 1996 when 1,677 rigs were in operation. October 1997 Brent spot crude averaged $19.97/bbl, falling to $12.17/bbl in July of this year (Fig. 2 [47,714 bytes]). Brent spot crude prices have not been this low since July 1986 when it averaged $9.41/bbl. Even relatively strong gas prices have not slowed the downturn in drilling activity with July 1998 natural gas spot prices (Natural Gas Clearingho...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected