Lower Rig Count Reflects Tough Short Term Outlook For Oilfield Services Companies

According to Baker Hughes, the rotary rig count, which is one of the most closely watched metrics of activity in the oil field services industry, was down by roughly 4% sequentially to 1,258 rigs in January for international markets. The total U.S. rig count has declined by around 20% since the beginning of the year to 1,456 rigs while the U.S. oil rig count has fallen by over 23% to 1,140, marking the lowest level since December 2011.