FX.co ★ US rig count hits all-time low

The number of rigs drilling for oil and natural gas in the United States has fallen to the lowest level since 1944, Baker Hughes oil services company said.
The number of oil drilling rigs fell by another 10 units and totaled 406 units in the week ended May 13. Thus, the oil rig count reached its lowest level since December 2009.
Baker Hughes total US rig count declined to 406 units. A year ago, 888 rigs were active
This is the lowest level over the past 72 years since Baker Hughes began tracking data.
With the advent of new technologies, the United States had less need for drilling capacity. The highest-ever oil and natural gas rig count of 4,530 was recorded in 1981.
However, today the decline is due to a sharp fall in oil prices that continues since 2014, not because of new technologies.
Despite some mistakes in investment plans and capital costs of companies due to changes in market conditions, oil and gas companies in the US have to keep cutting costs even after slight recovery in oil prices in early 2016.
A decline in active drilling rigs over the last time means that American companies lag behind their rivals at current oil prices.