During the year, the number of drilling rigs for oil and gas production in the world has more than halved
10 Aug 2020

During the year, the number of drilling rigs for oil and gas production in the world has more than halved

In July, the number of operating drilling rigs for oil and gas production worldwide decreased by 1,208 units compared to July 2019.

This is evidenced by a new report by the American oil and gas service company Baker Hughes, reports teknoblog.

In particular, in July the number of drilling rigs decreased compared to June by 43 units to 1,030 units.

The largest number of stopped drilling is accounted for by American shales.

In July alone in the United States, according to the company, the figure fell compared to June by 19 units and amounted to 255 units. Interestingly, in Canada, drilling has just increased - by 14 units, up to 32 installations.

The number of drilling rigs in Europe fell by five to 105 units. In the Middle East, it decreased by 28 to 315 units. In the Asia-Pacific region (APR), the number of installations decreased by four to 193, in Africa - by four to 56 drilling rigs. In Latin America, the figure rose by three to 74 units.

Analysts believe that the United States is on the verge of a record collapse in oil production. The number of gas and oil rigs has fallen to a minimum, production is steadily declining. Companies file for bankruptcy en masse and suspend operations.

According to analysts at Rystad Energy, about 140 US oil and gas companies will go bankrupt this year. Shale production in the United States could fall below 5 million barrels per day. As a result, according to ShaleProfile Analytics, the United States misses a third of the shale industry.

It is impossible to return to the previous volumes of production in the conditions of falling of the demand caused by a pandemic. "It will probably be years before shales reach the same level again, if it ever happens at all," says The Wall Street Journal.

According to a study by the Federal Reserve Bank (FRB) of Dallas, even in the relatively "cheap" Permian shale basin in West Texas, oil needs an average of $ 49 per barrel for profitability. According to the Federal Reserve, at $ 40 a year, only 15% of producers will survive.

Source: https://ecotown.com.ua