US Shale Drilling-Rig Usage Plunges by Most in Five Months

(Bloomberg) -- The US shale-oil sector experienced the biggest plunge in drilling activity in more than five months as explorers keep a tight hold on spending.

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The number of US rigs drilling for oil fell by five to 506, marking the biggest slide since Nov. 3, according to data released by Baker Hughes Co. on Friday. This week’s move reverses last week’s five-rig increase.

After better-than-expected output from fewer rigs in 2023, US shale executives now are in the midst of slowing down amid a shrinking inventory of top-tier drilling locations, weak natural gas prices, and industry consolidation. Total spending by North American explorers is forecast to drop 1% this year, according to Barclays PLC.

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