Reminder: the rig count drop is but a leading indicator of US oil production

The rig count’s meaning is in the eye of the beholder.
The rig count’s meaning is in the eye of the beholder.
Image: Reuters/Lucy Nicholson
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The rig count fell again.

Image for article titled Reminder: the rig count drop is but a leading indicator of US oil production

And prices are up.

Image for article titled Reminder: the rig count drop is but a leading indicator of US oil production

But so is production.

Image for article titled Reminder: the rig count drop is but a leading indicator of US oil production

And so are stockpiles of the black stuff.

Image for article titled Reminder: the rig count drop is but a leading indicator of US oil production

In fact, the US Energy Information Administration hasn’t seen a slowdown in production for any of the major regions it tracks since oil prices started falling in June.

But that’s a monthly report, and with all the energy industry layoffs and spending cuts, maybe production will start to slow down. Business Insider thinks the production bump is all about oil companies playing chicken with their balance sheets, so maybe not. We’ll see. At least gas is still cheapish.