Following the launch of its weekly oil and gas monitor, which tracks onshore and offshore Gulf of Mexico (GoM) rig activity in light of the oil price crash, Gaffney, Cline & Associates (GCA) has revealed the largest week on week unit drop in six years.
Using the Baker Hughes rig count, GCA noted a fall of 74 in the US onshore rig number, making the total decline, from a year high of 1,876 in November 2014, to 254 with 1,622 rigs on 16 January 2015.
This places the index for US onshore rigs at 90, compared to 94 the previous week. The index for Brent improved one point to $46 per barrel during the week.
GCA executive director and senior strategic advisor Bob George commented: “The fall in the number of onshore rigs this week can be compared to the fall seen during the last oil price crash in 2008-2009. The trends seen this time are similar to then, although we are at an earlier stage in the cycle, relatively speaking.