July 5, 2013
The U.S. growth in the Shale play is driving rigs despite its decline. This job sector is unique and being reported that the “Rig Count in U.S. Drops to Two-Month Low, Baker Hughes Reports” has dropped.
Bloomberg BusinessWeek reported, “The U.S. energy rig count declined to the lowest level in two months this week, according to Baker Hughes Inc. (BHI). The total count fell by 11 to 1,748, the Houston-based field services company said on its website. Oil rigs dropped by 15 to 1,390, a nine-week low. Gas rigs rose by four to 353, the first increase in six weeks.”
Rig news is relevant to production, growth and energy sector development. The data from the Energy Information Administration data revealed, “A resurgence in U.S. gas and oil output, driven largely by hydraulic fracturing and horizontal drilling, helped the nation meet 89 percent of its energy needs in March, the highest monthly rate since April 1986. Soaring supplies and more efficient techniques such as pad drilling have driven the energy rig count down from more than 2,000 in early 2012.”
The data reveals the growth of shale growth and the reduction of inefficiencies through technology are producing productivity supporting reduction in rigs despite higher production.