By Tyler Durden at ZeroHedge
With oil prices down another 6% this week (despite Saudi leadership uncertainty and ECB QE), widespread layoffs announced in Shale states, and despite Treasury Lew's comments that he doesn't see US oil production declining, it is perhaps no surprise that the US rig count cratered further to its lowest level since August 2010.
- *U.S. OIL RIG COUNT -49 TO 1,317, BAKER HUGHES SAYS
- US HORIZONTAL DRILLING RIGS DOWN 24 AT 1,229 IN WEEK TO JANUARY 23 -- BAKER HUGHES
The rig count continues to collapse... as 4-month lagged oil prices lead the way - just as they did before...
- *ENERGY RIGS IN TEXAS'S EAGLE FORD FORMATION DOWN FOUR TO 181
- *MISSISSIPPIAN LOSES FIVE RIGS TO 63: BAKER HUGHES
- *ENERGY RIGS IN PERMIAN BASIN SLIDE BY 6 TO 481: BAKER HUGHES
- *ENERGY RIGS IN WILLISTON BASIN FALL BY 12 TO 153: BAKER HUGHES
- *ENERGY RIGS IN MARCELLUS FORMATION GAINS ONE TO 76
Notice that the rig count always undershoots before prices are able to reverse.
* * *
Not "unambiguosly good"!
Houston (and CO, ND, PA, WV) we have a problem...
But don't worry - Treasury Secretary Lew says the oil companies can handle it...
- *LEW SAYS U.S. CRUDE PRODUCERS CAN HANDLE DECLINE IN OIL PRICES
As credit risk hovers near record highs for the sector....
Charts: BloombergCourtesy Tyler Durden, founder of ZeorHedge (EconMatters author archive here)
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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