CHART OF THE WEEK: The Collapse Of The U.S. Oil Drilling Rig Count Spells Big Trouble Ahead

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by Steve St. Angelo, SRSRocco Report:

U.S. Energy Independence that lasted for less than one year, is over.  With the collapse of the domestic oil drilling rig count, U.S. shale oil production will begin to fall off a cliff in the next 3-6 months.  This should also destroy the notion of a “V-Shaped” economic recovery once and for all.

According to Shaleprofile.com, U.S. shale oil production peaked at 8.3 million barrels per day (mbd) in November 2019 and declined to 7.8 mbd by March this year.  However, the oil rig count from November to March was about the same, 683 rigs.  During these five months with the oil rig count about the same, shale oil production declined 500,000 barrels per day.

Unfortunately, since mid-March, the domestic oil rig count has collapsed from 683 to 185 today (Source: Baker Hughes).  That is nearly a loss of 500 oil drilling rigs:

Again, with the U.S. oil drilling rig count down 73% in just the past four months, watch for a significant decline in shale oil production over the next few months.  Even if the shale oil industry starts to add more drilling rigs, the damage is already done.

As I have stated several times, I believe the U.S. economy will be in serious trouble in the second half of the year, and especially during Q4 2020.  But, it won’t end there.  The economic situation will likely continue to weaken in 2021.

Investors better start considering protecting some of their wealth in physical Gold & Silver.

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