Number of Calif. active oil rigs falls to lowest since 1992

Number of Calif. active oil rigs falls to lowest since 1992

The number of active oil rigs in California has dramatically dropped over the years to reach its lowest level since at least 1992, oilfield services firm Baker Hughes of Houston stated in its latest report.

According to the newly published report, the total number of active land oil rigs in the Golden State has dropped from 44 in 2014 to merely 4 this year. That’s the lowest number for active rigs in the state since Baker began compiling the stats back in 1992.

Troy Walters, senior economist with IHS Global, said, “That’s huge, obviously. Fortunately for California, the state has an incredibly diverse economy and has not been affected as much as places like Texas and North Dakota.”

The decline in the number of active oil rigs is in line with the decline in oil prices. In a recently released report on future of oil prices, IHS predicted that the outlook for the remaining part of this isn’t a lot rosier for the energy states like California.

Texas has been hit by the issue even harder, as the number of active rig in the state slipped 78.7 per cent, from 900 in the fall of 2014 to just 192 in March of this year.

Global prices of crude oil have slipped from more than $100 per barrel in June 2014 to lower than $30 a barrel in February this year, suggesting that oil industry is highly sensitive to fluctuations in prices.