The price of crude oil is largely controlled by the United States' economy due to the massive demand and oil production in the United States. Most of the crude oil is sourced from oil rigs drilling, which can be tracked through various sources. Because rig count is a good indication of how much crude oil would be produced, theoretically there should be a positive relationship between the two. However, the time it takes to obtain crude oil is lengthy; as a result the oil price should see a trending lag behind rig count. This analysis will utilize plotly and additional interactivity to examine the number of rigs and the oil price and determine the lag among the two.
After a couple of visualization and analyzing cross-correlations, it was found that the oil price fluctuations would affect the US and LATAM active rig counts after approximately 3 months given that US has about 50% the world's active rig counts. And the oil price fluctuations would affect the AP active rig counts after approximately 2 months. The reasons behind the lag could due to the lengthy process of planning and drilling the wells, among other logistical and economical decisions.