US Oil Rig Count Drops As 10 Rigs Are Closed

As per data released by Baker Hughes the number of oil and gas rigs in United States has reduced by 9 during one week as producers closed down 10 oil rigs and added just one 1 gas rig. In Texas which is considered the heart of shale oil and has maximum number of oil and gas rigs in the country around five rigs were closed down though there was overall growth in numbers by 20 since last year. The Permian basic located in Western Texas region with the most extensive shale field had to close down seven rigs that brought down total number of oil rigs to 466.

The actual rig count of US last week was at 1038 but now it has dipped by four though it grew by 57 since last year. The shortage of pipelines in Western Texas has led to many companies trying to dig wells for oil but then left them incomplete as they did not have sufficient numbers of pipeline capacity to increase their operations. Even though some of them have cut back their operations the existing shale companies in US continue to produce more oil to break all production records in the world.

In recent years records show that oil production surged to nearly 12 million barrels every day. Shale energy producing plants in US are concentrating on reducing their expenditure in 2019 but will remain focused on increasing their production levels of gas and oil. Earlier there was talk that shale energy firms may cut down their capital expenditure by 5 % after price of crude fell during last year. In recent years while some shale companies are burdened by debt and dividend payout. But luckily oil production surged from 10 million barrels to nearly 12 million barrels every day. According to estimates combination of groundwork carried out by energy companies and latest technology used by these drilling firms they have been able to grow production.