According to a recent Bloomberg story: “In June 2014, the U.S. pumped 8.4 million barrels of crude using 1,545 drilling rigs. Last month, it produced about 12.2 million barrels, 45% more, with just 788 rigs.”
For the rest of the industry, this is wonderful news, but for oilfield services companies large and small, these efficiencies have caused severe overcapacity and economic pain. more with less @ fool.com
The U.S Removes 12 Oil Rigs: Oil rig count was 742, down from 754 in the week ended Aug 23. Notably, the tally has never dropped to such a level since early January 2018. In the past nine weeks, drillers lowered the tally eight times. The current total, far from the peak of 1,609 attained in October 2014, is also lower than 862 a year ago.
Severe overcapacity and economic pain?
Halliburton Cuts 8% of North American Fracking Jobs. Christopher Wright Talks About the Slowdown in Fracking
Drilling permits are down 60% in Colorado
Five months after the new anti frac law took effect, drilling permits are down 60% from the last decade average, one operator has declared bankruptcy, and 10 local communities have passed moratoriums on new drilling. – denver.cbslocal.com
Colorado governor Polis: Your jobs are valued, and you’re an important part of the diversity of our state
“Your jobs are valued, and you’re an important part of the diversity of our state,” Polis says.
Colorado governor tells oil and gas industry that concern about local rules, A drilling ban is ‘silly’
Jared Polis sain in an industry meeting Wednesday that international markets and instability abroad have more impact on oil and gas than the state’s new approach to regulation.
Polis argued that new law brought stability to the industry by heading off more drastic restrictions on where wells can be drilled. Even though in the past elections Colorado residents voted against any new restrictions on the Oil industry that would cause job losses.