US Rig Count Tumbles To Annual Decline; Jobs & Production Next?

The number of oil rigs in the US has declined for the first time since April 2021.

Baker Hughes reported last week that the number of drilling rigs active in the US fell by 11 to 720.

Down 8 rigs YoY


Source: Bloomberg

The newest version of the

First annual decline since April 2020


First, we ask a simple question - why are rigs down almost 10% since the February highs?

Will Oil & Gas Extraction Industry Jobs start to decline in the future?

Source: Bloomberg

The drop in the number rigs this week was attributed entirely to the oil rigs. They fell 11 to 575

Gas rigs remain at 141. The number of miscellaneous rigs has remained the same, at 4.

Source: Bloomberg

The drop in oil rigs

US crude production may be on the decline

All things being equal, it should imply higher prices, but for now, it does not.