The total US oil and gas rig count fell 29 to 369 on the week, rig data provider Enverus said Thursday, marking the ninth straight week of double-digit declines as the industry downturn continued deepening from the coronavirus pandemic.
The weekly drop came entirely from a decline in oil-focused rigs, which fell by 30 to 256. Natural gas-weighted rigs rose by one to 113, Enverus said, with the gain coming from outside the eight named large basins.
Since oil prices plunged in mid-March, upstream producers have cut their capital budgets, with larger operators slashing spending by about 20%, to nearly 100% cuts by smaller producers, the Dallas Fed noted in a Thursday report.
The Fed said most of the expenditure cuts are front-loaded, and the impact from lower drilling activity will be felt mostly in Q2 2020.
Last updated on Sat., May 16, 2020.