Rig Count Weekly June 7, 2010
Number of oil drilling rigs fell for 10 for the week ending June 4, 2010: Number of natural gas drilling rigs fell for 20 rigs in the same time frame.
Offshore drilling ban is a reason for a this kind of a drop. The number of offshore drilling rigs fell for 24, out of which 23 were in the Gulf of Mexico. If the drilling activity stalls for a longer time period (more than a year), the crude oil price could be bound for a new all time high in mid term.
Chart 1. Baker Hughes U.S. Rig Count Change
Source: Baker Hughes
Chart 2. Baker Hughes Weekly U.S. Rig Count
Source: Baker Hughes
Chart 3. Baker Hughes Monthly World Rig Count
Source: Baker Hughes