Operators pulled the highest number of oil and gas rigs out of service as they have in six months last week, as the U.S. oil and gas operators pulled a net 21 rigs out of service last week; 17 oil and four gas, according to the Baker Hughes North America rig count, the most in a single week since April. The majority of the decline was driven by Permian Basin operators, where a net five oil and gas rigs were lost.
The huge decline brought the nation’s total number of oil and gas rigs to 830, more than 200 fewer than the same week a year ago.
As the Houston Chronicle reports, the shale boom has been losing momentum as the oil and gas industry faces the prospect of another downturn. Oil prices are stuck in the $50-$60 per barrel range, shrinking oil and gas companies’ profits.
Schlumberger, a firm that helps energy producers find and extract oil and gas, said Friday that it anticipates activity in North America’s shale fields to decline more than usual this winter because of the low oil prices and increased shipping costs, although as it expects strong demand in international and offshore drilling regions to continue, according to The Wall Street Journal.
