“The U.S. rig count will fall by another 150 rigs over the next six months, which could cause the count to fall to 550 before shale plays begin to see an uptick in activity again, a dramatic decline that implies ‘a much uglier fundamental year than current consensus estimates,” says Raymond James by way of Seeking Alpha.

Raymond James “expects annual oilfield spending to fall 42% amid “skinny E&P cash flows and a non-existent debt market,” according to the post.

With low oil prices pressuring oil producers’ bottom line, industry experts expect capital spending on new projects to decline by 20% and 30% on average, according to Wood Mackenzie, an energy consultancy. The consultant calculated that about $220 billion in investments have been cut so far, or $20 billion more than previously estimated two months ago, after the recent price declines. Some industry analysts see the downturn lingering into next year, though it will not be as severe as what was seen in 2015.

Market Vectors Oil Service ETF