Baker Hughes warns global rig count could fall 30% in 2016

By Gbenga KOSOKO

LAGOS-OILFIELD services provider Baker Hughes, which is being acquired by larger competitor Halliburton, said Thursday it expects the number of rigs working globally to decline by up to 30% in 2016, should crude oil prices not rise from current levels.

The worldwide rig count plunged roughly 50% in 2015, Kallanish Energy reports.

A more-than 70% drop in crude prices since June 2014, caused by a glut and weakening demand, has forced oil producers to lay down rigs and sharply cut capital spending.

“Customers’ challenges of maximizing production, lowering their overall costs, and protecting cash flows were now more acute,” Baker Hughes CEO Martin Craighead said.

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