Louisiana closes 2016 with 10 fewer active oil and gas rigs

    As a rough year for the oil and gas industry draws to a close, the weekly rig count from Houston-based Baker Hughes shows Louisiana is ending 2016 with 10 fewer active rigs than it did at the close of 2015.

    A total of 48 rigs were actively exploring for oil and gas in the Bayou State as of today, down from 58 during the closing week of last year. While Louisiana saw its rig count decline this year, it held steady in December, averaging 48 rigs each week. This week’s count is unchanged from a week ago.

    Of the four dozen active rigs in Louisiana, 23 are located inland in the northern part of the state and 21 are offshore, Baker Hughes reports. Another one is operating in inland waters in south Louisiana and another three are inland rigs spread across the southern part of the state.

    Across the U.S., the rig count is closing 2016 at 658, an increase of five rigs on the week, but a decline of 40 from a year ago. Of the total tally, 525 rigs are primarily drilling for oil, Baker Hughes reports.

    The U.S. rig count has rebounded in the second half of the year after falling to an all-time of low of 404 in May. However, there are still 67% fewer active rigs today than there were at the industry peak of 1,609 in October 2014, when oil prices began plummeting.

    Oil prices hit a 2016 low of just over $26 per barrel in February, and have since rebounded to just below $54 as of this afternoon.

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