(Bloomberg) -- Oil and natural gas exploration plunged to an all-time low as the economic and industrial dislocations from the Covid-19 pandemic snuffed out the remnants of the American shale boom.Drilling in U.S. oil and gas fields retreated by 34 rigs this week to 374, led by a precipitous drop in crude exploration that sank to levels not seen since before the shale-oil revolution kicked off at the beginning of the last decade.Energy companies are in a full-on retreat as the historic slump in crude markets prompts widespread job cuts, budget reductions, contract cancellations and well shut-ins. In the span of just eight weeks, 53% of active American oil and gas rigs have gone dark, according to data released by Baker Hughes Co. on Friday.“This is an unprecedented downturn,” EOG Resources Inc. Chief Executive Officer Bill Thomas said during a conference call with analysts. “U.S. oil production is in severe decline and it could take years for domestic production to turn around. We believe that the historic and prolific oil-production growth by U.S. shale may have been forever altered.”Benchmark American oil futures have dropped 63% from the 2020 high of $65.65 a barrel in early January as the worldwide pandemic slashed demand for petroleum-based fuels at a time when the global surfeit was already expanding. On April 20, the price cratered to minus $40.32.The historic downturn will drastically reduce capital available to the industry, said Thomas, who leads the world’s second-largest independent explorer by market value.What Bloomberg Intelligence SaysDiversified oilfield-services companies such as Schlumberger, Halliburton and Baker Hughes are levered to onshore-drilling trends, as are rig contractors Helmerich & Payne, Nabors and Patterson-UTI.\-- Scott J. Levine and Justin Rothhaupt, BI analystsRead the full report here.View deep dives analyzing the Covid-19 impact on Clean Energy, Commodities, Transport, Digital Technology, and Materials.Baker Hughes’ weekly rig tallies have been a key oil-industry metric for decades because of the close correlation between drilling activity and crude production. U.S. oil output has fallen by 1.2 million barrels a day, or 9.2%, since touching 13.1 million in the second week of March. The combined oil- and gas-drilling figure released Friday was unrivaled in data going back to 1975.Fracking -- the more expensive process of blasting a mix of water, sand and chemicals into drilled wells to finally unleash the oil and gas trapped in the shale rock -- is also in retreat. The number of frack crews working in the U.S. fell by 8 to 47, marking a new record low for a count that’s been compiled since the start of 2014, according to industry consultant Primary Vision Inc.In this week’s frack-crew data, released late Friday, the Permian Basin of West Texas and New Mexico saw the greatest number of cutbacks. Seven crews were dropped there, leaving 32 still working in the world’s biggest shale patch.(Updates with latest frack-crew count in last two paragraphs)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Signs of a further drop in U.S. crude-oil production are everywhere, from a slowdown in fracking activity and sharp weekly declines in the active oil-rig count, to expectations of a May decline for all seven major shale-oil output regions.

In breaking news, Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil dropped by 33 to 292 this week. The oil rig count has now fallen for eight weeks in a row, implying upcoming declines in domestic crude output.

Oil rig count continues to decline

U.S. Energy Services firm Baker Hughes reported that the number of active U.S. rigs drilling for oil dropped by 21 to 237 the week-ending May 22.

Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil dropped by 21 to 237 this week. The oil-rig count has now fallen for 10 weeks in a row, implying upcoming declines in domestic crude output. The total active U.S. rig count, meanwhile, also fell by 21 to 318, according to Baker Hughes. July West Texas Intermediate crude held onto earlier losses, trading down 95 cents, or 2.8%, at $32.97 a barrel.

The trend may be down, but upside momentum is very strong. Furthermore, after knocking down some minor walls, traders are starting to see room to the upside.

Oil futures settle lower Friday, with U.S prices breaking the longest winning streak since February 2019 on worries over fresh tensions between the U.S. and China.

Houston-based Baker Hughes Co. (NYSE: BKR) is planning layoffs that will affect more than 180 people in Houston. The layoffs are expected to commence on June 15, according to a Worker Adjustment and Retraining Notification Act letter filed with the Texas Workforce Commission on April 22. The company is closing a manufacturing plant on Navigation Boulevard, and its operations will be moved to a plant on Emmott Road in northwest Houston.

Oil drillers in the Permian basin continue to remove rigs since the coronavirus pandemic dented global energy demand.

(Bloomberg) -- Shale explorers slashed U.S. oil drilling to the lowest level in more than a decade as they struggle to navigate a historic market crash that has pushed several into bankruptcy.Explorers idled oil rigs for a ninth straight time this week, shrinking the active fleet by 34 to 258, according to Baker Hughes Co. data released Friday. The count has plunged from 683 just nine weeks ago. In the Permian Basin of West Texas and New Mexico, 23 rigs were dropped, leaving 175 to work in the world’s biggest shale patch.Oil prices have plummeted by more than half since the start of this year as much of the world remains shut down in an effort to stop the spread of the coronavirus, obliterating demand for fuel.Baker Hughes’ weekly rig tallies have been a key oil-industry metric for decades because of the close correlation between drilling activity and crude production.American crude production dropped to 11.6 million barrels a day last week, from a record level of 13.1 in March, according to government data.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

After oil supply surged in March, investors took a more positive view in April. But this story is far from over, especially for this trio.

Oil futures ended with a loss on Friday as tensions between the U.S. and China raised demand concerns for the commodity, but prices found support for the week from global production cuts and expectations for further reductions. Baker Hughes on Friday reported a 10th straight weekly fall in the number of active U.S. oil rigs. July West Texas Intermediate oil fell 67 cents, or 2%, to settle at $33.25 a barrel on the New York Mercantile Exchange. Based on the front-month contracts, prices rose nearly 13% for the week, according to Dow Jones Market Data.

Domestic drillers may continue to lower rigs in oil patches since global energy demand has declined drastically owing to the coronavirus pandemic.

Baker Hughes (NYSE: BKR) announced Friday that it has agreed to sell its Lufkin rod lift business to private equity fund manager KPS Capital Partners, LP for an undisclosed sum.Reuters reports the unit would likely be valued in the $200-million range.Lufkin rod provides technologies, equipment and software for rod lift equipment to the oil and gas industry.Once the transaction is closed, the company will transfer assets of the Lufkin rod lift business to an affiliate of KPS, including brand rights, facilities, intellectual property and personnel.Lufkin's power transmission business will remain part of the Baker Hughes portfolio and is not included in the transaction. The deal is expected to be completed midyear."KPS will build a successful energy platform on the foundation of Lufkin's legendary brand name, unparalleled reputation for reliability, superior technology and global footprint," Michael Psaros, co-founder of KPS, said in a statement."KPS Partner Ryan Baker will lead a team to acquire complementary technologies and products that serve the upstream sector of the energy industry in partnership with Lufkin's management team. Lufkin will benefit from being a debt-free business with access to the very significant financial resources of KPS,."Baker Hughes shares were trading down 1.08% at $13.80 at the time of publication Friday. The stock has a 52-week high of $25.99 and a 52-week low of $9.12.Related Links:Baker Hughes Reports Climb In Total Oil RigsWhy Baker Hughes Stock Is Trading Higher TodaySee more from Benzinga * Why Baker Hughes Stock Is Trading Higher Today(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil dropped by 60 to 378 this week. That marked a sixth straight weekly decline. The total active U.S. rig count, meanwhile, also declined by 64 to 465, according to Baker Hughes. June West Texas Intermediate crude was up 42 cents, or 2.6%, at $16.92 a barrel.

Optimism about recovering oil demand has investors plowing into these oilfield services and equipment providers' stocks today.

BP plc (BP) missed earnings estimates, Kinder Morgan (KMI) reported in line, while Baker Hughes (BKR) came out with better-than-expected bottom-line number.

Baker Hughes' (BKR) first-quarter results are supported by higher cost productivity in the TPS unit, partially offset by lower volume in Surface Pressure Control and Services businesses.

Baker Hughes (BKR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.