The number of U.S. rigs drilling for oil fell the most in a month, a sign that America's cutbacks aren't over yet.
Drillers idled 42 oil rigs (excluding gas rigs), reducing the number to 760, Baker Hughes reported on Friday. The rig count has dropped 53 percent since October, an unprecedented retreat, as the decline in oil prices has made production less profitable. The median forecast from a Bloomberg survey of 11 #RigCountGuesses on Twitter was for a reduction of 9 rigs.
But production isn't slowing yet, and new efficiencies in U.S. drilling and pumping may make raw numbers of rigs in the field misleading. The U.S. will pump 9.2 million barrels a day this year, the most since 1972, despite the fewest rigs in the field in almost four years, according to the Energy Information Administration.
Active Oil Rigs vs Production
Watch Four Years of Drilling Collapse in Seconds
Read This Next:
- This Animated Map Shows How Moving Oil by Rail Exploded in the Past Five Years
- California's New Era of Heat Destroys All Previous Records
- U.S. Oil Imports From OPEC Have Plunged to a 28-Year Low