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U.S. rig activity leveling out

Rig counts, a barometer of industry health, staying relatively even.

By Daniel J. Graeber

BISMARCK, N.D., May 26 (UPI) -- The number of rigs actively exploring or producing oil and natural gas in North Dakota was 82 as of Tuesday, relatively stable from a week ago, state data show.

The state government reported 82 rigs in active service as of Tuesday, down one from May 18.

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The rig count, a reflection of the health of the exploration and production side of the sector, is at its lowest level since January 2010, but holding steady for North Dakota.

Rig counts in the state fell from 93 at the middle of April to 84 by the end of that month.

Low oil prices means less cash for energy companies to spend on exploration and production. Oil field services company Baker Hughes reported 885 rigs in active service in the United States in its weekly count last week, down three from the previous week.

North Dakota is the No. 2 oil producer in the country. In Texas, the top oil producer in the nation, the number of rigs in active service, 373, was unchanged for the week ending May 22 according to Baker Hughes.

Total U.S. oil production of 9.3 million barrels per day is 12 percent higher year-on-year, but the lowest level since early February, the U.S. Energy Information Administration reports.

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