The number of active oil and natural gas rigs in the U.S. has plunged to the lowest level on record going back to 1949, according to a Baker Hughes report released on Friday.
The data revealed that the total dropped to a new record this week as the oil rig count fell by 6 to 386. The total count of oil and gas rigs fell 9 to 480, down by a stunning 57% from 2015.
This is the 12th straight week of declines in oil rigs, which are the lowest level since the week of December 4, 2009.
The rig count topped out at 2,026 back in November 2011 when oil prices were sitting close to $100 a barrel.
Gas rigs fell by 3 to 94, the lowest point since at least 1987. Overall, gas rigs tumbled a whopping 163 from a year ago when 257 rigs were in operation.
Canada was also hit hard, losing 22 oil rigs and 9 gas rigs this week for a combined tally of 98. Canada previously had 220 rigs last year, down 122 overall for the year.
Oklahoma lost 3 rigs in the past week, down to 67, while a year ago, it had 134 rigs, reflecting a decrease of 50%. While North Dakota fell by one rig to 32, Texas suffered the largest loss, dropping by 12 rigs to reach 215. Overall, Texas is down 286 rigs from last year’s tally of 501 rigs. Kansas added two rigs to reach 9 this week. Louisiana reflected the largest gain after adding three rigs to reach 49, paling in comparison to last year’s rig count of 93.
Activity in the area oil plays revealed similar falls in rig count, with the Permian Basin in West Texas down 6 rigs to 152, over 50% less than last year’s figure of 311. The Eagle Ford in southern Texas dropped three to reach 43, while it had 146 active rigs a year ago. The Granite Wash slipped by 2 to reach 8, compared to 26 rigs last year.
Energy firms have sharply reduced oil and gas drilling since the selloff in global crude markets began in mid-2014. Still, many analysts think the rig count will rebound later this year with signs that oil prices bottomed in the last month after U.S. crude hit a 12-year low close to $26 a barrel.
