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US Onshore Rig Count Is down 54% since November 2014

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Onshore rig count is down again

During the week ending May 1, 2015, the US land-based, or onshore, rig count fell by 27—compared to the previous week’s count. Last week, there were 871 land-based rigs, including three inland water rigs. The inland water rig count didn’t change from the previous week.

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 C&J Energy Services (CJES), 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).

Last week, the onshore rig count declined for 23 consecutive weeks. Texas lost 13 rigs, while Oklahoma lost seven rigs. The onshore rig count reached 1,876 in the week ending November 21, 2014—the highest since July 2012. A total of 1,005 onshore rigs have gone offline since then—a decline of ~54%.

In the past year, the land-based US rig count fell by 929. The number of land-based rigs declined the most in Texas—512 rigs shut down. North Dakota lost 97 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.

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Most prolific states

Despite the recent decrease, Texas still has the most land-based rigs in the US with 379, or 44%, of the total US land-based rigs. Oklahoma is next with 108 land-based rigs. North Dakota has 79 land-based rigs.

In the next part of this series, we’ll discuss how the offshore rigs fared.

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