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US Onshore Rig Count down 52% since November 2014

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Onshore rig count lowest since July 2009

During the week ending April 24, 2015, the US land-based or onshore rig count fell by 23—compared to the previous week’s count. Last week, there were 898 land-based rigs, including three inland water rigs. The inland water rig count decreased by one from the previous week. With last week’s count, the number of active US onshore rigs fell to the lowest level since July 17, 2009.

Oilfield service companies provide various drilling-related services and technologies. The falling rig count will reduce oilfield service companies’ revenue. The largest oilfield service companies include Weatherford International (WFT), Oil States International (OIS), Cameron International (CAM), and National Oilwell Varco (NOV). Combined, these companies form 16.3% of the VanEck Vectors Oil Services ETF (OIH).

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Last week, the onshore rig count has declined for 22 weeks in a row. Texas lost 19 rigs, while North Dakota lost five rigs. The onshore rig count reached 1,876 in the week ending November 21, 2014—the highest since July 2012. A total of 978 onshore rigs have gone offline since November 21, 2014—a decline of ~52%.

In the past year, the land-based US rig count fell by 909. In contrast, the number of offshore rigs decreased by 20. The number of land-based rigs declined the most in Texas—500 rigs shut down. North Dakota lost 101 rigs last year.

Although the onshore rig count had been on an uptick since the beginning of 2014, falling crude oil prices ended that trend.

Most prolific states

Despite the recent decrease, Texas still has the most land-based rigs in the US with 392, or 44%, of the total US land-based rigs. Oklahoma follows Texas with 115 land-based rigs. North Dakota has 78 land-based rigs.

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