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Reaching Rig Bottom? Oil Rigs Decline for 17th Straight Week [Chart]

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Reaching Rig Bottom? Oil Rigs Decline for 17th Straight Week [Chart]

Reaching Rig Bottom? Oil Rigs Decline for 17th Straight Week

The Chart of the Week is a weekly feature in Visual Capitalist on Fridays.

For the 17th straight week, the amount of operational oil rigs has declined in the United States to 802. This is now over a 50% decline since last October, and the last time we had a rig figure this low was the week ending March 4, 2011.

However, as you can see in our chart this week, production is not slowing one bit. US production is now at its highest level since 1972 at 9.3 million bpd. This is the real story, as new efficiencies in oil drilling and pumping have made it so companies can do more with less rigs.

As a result, the amount of oil stored each week is actually setting new records. The Energy Information Administration estimates that the supply in the United States has outpaced refiner demand by 1 million barrels per day since January. At this rate, there will simply not be enough capacity to store all of this crude.

The share of capacity filled in Cushing, Oklahoma has jumped from 41% to 80% over the course of the last year. This storage problem will continue to put price pressure on Texas Tea – it would take some serious geopolitical events to pull oil out of its rut.

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Energy

Mapped: The Age of Energy Projects in Interconnection Queues, by State

This map shows how many energy projects are in interconnection queues by state and how long these projects have been queued up, on average.

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The preview image for a state-level U.S. map showing the number and average age of energy projects in interconnection queues as of December 31, 2023.

Age of Energy Projects in Interconnection Queues, by State

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

By the end of 2023, more than 11,000 energy projects were in interconnection queues in the United States, waiting for a green-light from regional grid operators to proceed with construction. 

This map, created in partnership with the National Public Utilities Council, maps out the average age of active energy projects in interconnection queues by state, using data from Berkeley Lab

Interconnection Queues, Explained

Interconnection queues are lists of energy projects that have made interconnection requests to their regional grid operators. Once submitted, these requests formally initiate the impact study process that each project goes through before grid connection, forming waiting lists for approval known as interconnection queues. 

In recent years, both the number and generation capacity of queued projects have surged in the United States, along with the length of time spent in queue. 

According to Berkeley Lab, the amount of generation capacity entering queues each year has risen by more than 550% from 2015 to 2023, with average queue duration rising from 3 years to 5 years the same period.  

As a result of the growing backlog, a large proportion of projects ultimately withdraw from queues, leading to only 19% of applications reaching commercial operations. 

The Backlog: Number of Projects and Average Wait Times

Of the 11,000 active projects in U.S. queues at the end of 2023, Texas, California, and Virginia had the most in queue; 1,208, 947, and 743, respectively. 

When looking at the average ages of these projects, all three states hovered around the national average of 34 months (2.83 years), with Texas sporting 28 months, California 33, and Virginia 34. 

Vermont, Minnesota, Wisconsin, and Florida, on the other hand, had the highest average queue durations; 54, 49, 47, and 46 months, respectively. 

Average Queue Duration by Project Type

At the end of 2023, more than 95% of the generation capacity in active interconnection queues was for emission-free resources. The table below provides a breakdown. 

Project TypeAverage Queue Duration
(As of 12/31/2023)
Number of Projects in Queue
Wind40 months841
Solar34 months4,506
Wind+Battery34 months76
Solar+Battery27 months2,377
Battery24 months2,818

Wind projects had the highest wait times at the end of 2023 with an average age of 40 months (3.33 years). Solar projects, on the other hand, made up more than 40% of projects in queue. 

Overall, reducing the time that these renewable energy projects spend in queues can accelerate the transition to a low-carbon energy future. 

According to the U.S. Department of Energy, enhancing data transparency, streamlining approval processes, promoting economic efficiency, and maintaining a reliable grid are some of the ways this growing backlog can be mitigated. 

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