BISMARCK, N.D., Dec. 7 (UPI) -- Despite a net drift lower in U.S. oil basins, North Dakota's rig count remained unchanged, but near a historical low, compared with last week.
State data show 64 rigs actively exploring for or producing oil or natural gas as of Monday, unchanged from the previous week. The historical low of 63 was set in November 2009. An all-time high of 218 was recorded in May 2012.
Last week, oil services company Baker Hughes reported 710 rigs in service at inland basins in the United States, down three, or about a half percent, from the previous week, but more than 1,100, or 37 percent lower-year-on-year.
In terms of percent, Utah lost the most with 20 percent, while in terms of numbers, Louisiana lost the most with four rigs leaving the state for the week ending Dec. 4.
Related
Data from Baker Hughes show rig activity in North Dakota dropping below the historical low at some point last week.
Most energy company are cutting back on spending as lower crude oil prices starve them of the capital needed for future investments in exploration and production. Drilling companies, however, are becoming more efficient.
In the latest snapshot on the North Dakota oil sector, Lynn Helms, director of the state's industrial commission, said lower oil prices are "the main reason for the continued slow-down" in rig activity in the state.
A fractured meeting last week from the Organization of Petroleum Exporting Countries suggests crude oil prices will stay lower for a longer period of time as the global economy makes incremental improvements.
North Dakota is the No. 2 oil producer in the nation. Crude oil production in September, the last full month for which data are available was 1.16 million barrels by day, about 5 percent below the all-time high set last December.
