“Davidson” submits:
There is some evidence of lower consumption trends for crude oil as LNG becomes a more popular fuel. Next week’s EIA data set will examine the trends concerning this observation. The rig count belies the a rising Fudge Factor in EIA data which suggests US Crude production is actually closer to 14mil BBL/Day than 12.3Mil BBL/Day shown. As a result, fewer rigs are necessary for oil production and this may be what is being reflected in this data.
The long-term history of the declines in the Baker Hughes Rig Count reflects drilling efficiencies per well and well output over time.