HOUSTON, April 7 (UPI) -- The total number of rigs actively exploring for or producing oil or natural gas worldwide declined 12 percent from February levels, Baker Hughes said Thursday.
Rig counts serve as a barometer for the health of the oil and gas sector, which has struggled as companies spend less on exploration and production because of lower crude oil prices.
Baker Hughes said in its March productivity report the total number of rigs deployed worldwide declined 210 from February to 1551. Year-on-year, the March worldwide rig count was lower by 40 percent.
The rig numbers reported by Baker Hughes reflect a general trend in crude oil prices, which started February at around $32 per barrel for Brent.
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In the United States, which is expecting a slowdown in crude oil production because of market strains, Baker Hughes reported a 10 percent decline in the rig count to 478. The company said in its rig count report last week that the number of rigs in the United States fell to their lowest level in more than 60 years for their 15th straight week of declines.
The industry itself has faced pressure from the declines in exploration and production. Last week, U.S. rig company Hercules Offshore, which in August filed for Chapter 11 bankruptcy protection, said prospects for drilling services for oil and gas won't improve without a recovery in crude oil prices. Schlumberger, the largest company of its kind, said the "massive over-capacity" in the market suggested there were few signs of a pricing recovery on the immediate horizon.
Baker Hughes and Halliburton, the two largest companies by market share behind Schlumberger, aimed to merge, though U.S. and European regulators have raised serious objections about competition.
