Oil drilling activity in America has fallen to its lowest level for six years as its fracking industry comes under intense pressure from depressed oil prices. According to oil services company Baker Hughes, the number of rigs drilling new wells in the US fell to 467 this week, down 31 from last week, marking the steepest drop for ten months. America produces nearly ten million barrels of oil per day after a boom in its fracking industry that began in 2010, contributing to a global glut that pushed the price of crude below $30 per barrel last month.
But much of America's fracking industry is losing money at current prices, and production is expected to begin falling as drilling is cut back, gradually reducing the global glut.More than 1,500 rigs were in operation in America in 2014, but that figure could fall as low as 250, reckons consultancy Wood Mackenzie, easing downward pressure on prices.
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