The number of rigs actively exploring for or producing hydrocarbons in North America declined more than three percent, oil services company Baker Hughes said.
Baker Hughes published its rig count data for the week ending Jan. 5, showing 1,811 rigs operating in the United States and 208 in Canada. Collectively, that's 77 less than the previous week.
In November when oil prices were above the $70 per barrel mark, analysis group Wood Mackenzie found North American producers may be able to adapt to a lower price environment without trimming operations.
On Monday, the price for West Texas Intermediate, the U.S. oil benchmark, fell below the $50 mark for the first time since 2009. Wood Mackenzie said $70 for WTI might be the threshold for drillers working in North American shale.
The rig count for the United States for the week ending Jan. 5 was the second straight week of declines, though the number is still 60 above what was reported for this week in 2014.
For Canada, the declines were more dramatic in terms of percent, with the rig count down 26 percent year-on-year.
Internationally, the sector remained resilient despite the low price for oil. The number of rigs actively exploring or producing on the international stage was up 16 from the previous week to 1,324 and 13 year-on-year.
A decision in November by the Organization of Petroleum Exporting Countries to keep production levels static was seen by some in the industry as a sign the 12-member production group was putting pressure on a capital-intensive U.S. shale industry.
