The frackers are gone

U.S. Oil Rig Count Falls To Lowest Level Since 2009

 The total oil and gas rigs are down by 687 compared to this time last year.

The number of oil rigs slipped for the week by 4 rigs, according to Baker Hughes data, bringing the total to 176, compared to the 764 active oil rigs this time last year. Two of those four rigs lost this week were in the Permian Basin.

The total number of active gas rigs in the United States stayed the same at 69 total rigs. This compares to 169 rigs a year ago.

To compare active rigs with supply figures, the EIA’s estimate for oil production in the United States fell for the week ending July 31—the last week for which there is data, at 11 million barrels of oil per day. Oil production in the United States is 2.1 million bpd less than its all-time high reached earlier this year.

Dollar jumps during a global contraction making oil cheaper faster. The dollar has since returned to normal, but we are still contracted.  Oil companies have to bet the covid trials to hedge on a return to normal.   I would bet six quarters of mild deflation. It all depends on the outcome of those covid trials.