Rigs at Permian Basin (Photo K. Aleklett)
The week ended Jan. 23 was just another week when the US drilling rig count fell and this time with 43 units according to the Baker Hughes Inc. report. The count has now fallen in 8 consecutive weeks, losing 287 units during that time. Forty-two of the 43 units that went offline this week were land-based, bringing that total to 1,568. Offshore rigs were unchanged at 54. Horizontal drilling rigs lost 24 units to 1,229. Wood Mackenzie recently said that, if oil prices average about $50/bbl in 2015, it anticipates a 40% decline in the horizontal rig count compared with last year. We can expect that more rigs will go offline the following weeks. Will we see the 2008-2009 decline?