The number of rigs drilling on shore in the United States continues to fall, with a high of 37 rigs being taken out of production in the last week of December, according to oilfield services provider Baker Hughes.
Currently less than 1,500 rigs are drilling for oil in the U.S. “We think it will fall every week for the next three months,” analysts at Credit Suisse said of the U.S. rig count. “We expect the market to lose at least 200 vertical and 200 horizontal rigs and it could easily be more than that.”
Taking oil rigs out of service means fewer wells will be drilled, but the energy industry more efficiently produces crude so more oil can be wrung from fewer wells. U.S. oil output during the week hit 9.14 million barrels a day earlier this month, marking the highest American production on record since the U.S. Energy Information Administration started tracking it in 1983.
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