According to a report in the Oil & Gas Journal, the United States rig count dropped for the tenth straight week in response to dropping oil prices. For the week ending February 6, 2015, the national rig count was estimated at 1,456 rigs working nationwide.
Drilling in the Bakken Shale area of North Dakota has slowed due to the drop in oil prices. Approximately 40 rigs have shut down over the past six weeks, although drilling operators in the region are urging a modest slow down. North Dakota rigs were reported at a five-year low on January 15, 2015, according to North Dakota Governor Jack Dalrymple.
Drillers have begun reducing rigs in the Permian Basin in Texas and New Mexico, which is the country’s highest producing region. Shutdowns are also occurring in the Eagle Ford region of south and east Texas.
Crude oil prices are down to nearly 60% of their normal highs. Some analysts estimate that at the current price levels, oil and gas companies could take as many as 650 onshore rigs offline.
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