The total Baker Hughes rig count was down 90 for the week, the steepest decline yet seen. The biggest news was that offshore rig count declined by 5 to 49 active rigs, a 10% weekly drop. This number can be very lumpy. The Permian basin lost 25 rigs 454, and I think was the biggest decliner in percentage terms among the major plays. The Barnett gas field lost 25% of its rigs and is now down to 19.
BTW, one addition I should have mentioned. The market reaction (oil up 8% in a day) to the rig count data was totally ridiculous. This rig count drop is somewhat more than in prior weeks, but it is hardly a reason for oil to rally like it did.
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