The Baker Hughes U.S. rig count was down 27 last week to 905, marking the 21st consecutive week of net rig decreases in the U.S. Oil rigs were down 24 to 679, gas rigs were down three to 222 and miscellaneous rigs were unchanged at four. By type, horizontal rigs were down 21 to 699, vertical rigs were down eight to 113 and directional rigs were up two to 93. Among gas rigs, horizontal rigs were down ten to 169, directional rigs were up three to 38 and vertical rigs were up four to 15.
As this rig decline plays out, it is interesting to see how the 2015 drop closely mimics the 2009 drop in gas rigs. But I expect the recovery to look nothing like 2009-10, when the oil rig count rocketed northward with the oil-driven activity increases in southern and western Texas as well as North Dakota.