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Rig Count Decline Reaches 16 Weeks, Pace Of Decline Drops Dramatically

In 2008/9, the rig count decline 18 weeks straight (dropping 57% overall over a 41 week period). Today's mere 21 rig decline to 1048 marks the 16th straight week of drops (down 45%) and is the smallest drop in 11 weeks. This is the biggest 16-week decline in rig count in 30 years. Crude is not reacting significantly yet but it appears the limits of efficiency gains before production takes a hit.

  • *U.S. TOTAL RIG COUNT -21 To 1,048 , BAKER HUGHES SAYS
  • *U.S. OIL RIG COUNT -12 TO 813, BAKER HUGHES SAYS

16th week in a row but smallest drop in 2015...

 

But this is still the biggest 16-week percentage drop in rigs sicne 1986...

 

A modest reaction so far...

 

Charts: Bloomberg