The number of oil and gas rigs in use in the US fell by 43 last week to 1,633, according to data from Baker Hughes.
This is the lowest level since the week of August 6, 2010.
The drop in rig count last week was comprised of 49 oil rigs falling out of use and 6 natural gas rigs coming on-line. The number of oil and gas rigs in use is now down by 144 from a year ago. Oil rigs in use are down 99 from last year to 1,317 and are down 209 from their peak of 1,609 hit in October.
This week’s drop in rig use saw the biggest decline from the Williston shale basin after the Permian and Eagle Ford basins had paced losses over the last few weeks.
The number of oil and gas rigs has tumbled over the last several weeks as the price of oil has cratered.
In its earnings announcement on Tuesday, Baker Hughes announced that it would cut 7,000 jobs and projected the number of rigs is use is likely to drop further before the end of the current down cycle.
Baker Hughes said that in past downturns in the number of rigs in use, usage has dropped 40%-60%. So far, the number of rigs in use has dropped about 15%.
Here’s the updated US oil and gas rig chart.