According to Energy Reporters, U.S. oil and gas rigs are starting to shut down in Texas. Last week, 8 rigs shut down. The Baker Hughes rig count reports that there were only 796 rigs left functioning in the U.S. by the end of 2019. 

The number of functioning rigs is down by more than 254 from December 2018. These numbers are very concerning to many prominent oil companies. 

Moreover, the Permian Basin spans the declines, with the West Texas oilfield reports suffering a net loss of nine rigs.

Permian fracking says they started with about 250 crews in January 2019. However, that number fell to 200 crews in December. 

Drilling activity has been on a decline all year. Many oil companies report that there were 408 active rigs last month. This is down by 10 from October and 82 from November 2018, according to the US government.

Artem Abramov, who is the head of shale research at Rystad Energy says that oil activity levels have sharply declined and are no longer what they were only a year ago. 

“Activity levels are no longer what they were,” said Artem Abramov. “The oil ratio is no longer sufficient to offset gas in older wells, so we’re seeing some increase in basin-wide gas-to-oil ratios," Abramov added.