Rig Count Decline Should Result in Production Decrease

According to Baker Hughes the weekly U.C. oil rig count has fallen for 12 consecutive weeks to 386 rigs on March 11th. The count is down 152 rigs so far in 2016. Falling rig count should result is decreased production faster than previously estimated. U.S. rig activity has fallen by 73% since peaking in October 2014. The U.S. Energy Information Administration monthly’s report shows that crude oil production from U.S. shale plays could fall by 106,000 per day in April.