Impact as Rig Count Continues to Decline

The rig count was down for the sixth straight week at the end of January. According to Baker Hughes, the oil rig count on Jan 29 was 498 compared to 1,223 this time in 2015. This is the lowest rig count since March 2010. On average U.S. drillers cut 18 rigs per week in 2015 for a total of 963, the steepest decline since 1988. U.S. crude oil price ended at $33 per barrel on Jan 29, with an overall gain for the week. Hess Corp., Continental Resources and Noble Energy all announced higher than expected cuts in their 2016 capital expenditure budgets last week.