Producers Reduce U.S. Rigs Drilling for Oil to Five-Year Low
- Rigs decline in all major production areas around U.S.
- Total number of rigs slides to lowest level since May 2002
Oil Producers Moving to Balance Production, Demand
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The U.S. oil industry reached a significant milestone this week on the path to recovery when a month’s worth of plummeting activity culminated in a five-year low for drilling rigs.
Rigs targeting oil in the U.S. fell by 26 to 614 this week, adding to the 35 sidelined in the previous four weeks, Baker Hughes Inc. said on its website Friday. Natural gas rigs were trimmed two to 195 and miscellaneous rigs slipped by one to zero, bringing the total down 29 to 809, the fewest since May 2002. All four of the major crude plays saw less activity, with the Permian Basin in West Texas losing seven oil rigs to 240.