Drillers packing up gear, rig count drops, potential signal of tighter oil supply. Investors should watch oil stocks, favoring efficient producers.

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The number of oil rigs fell by 9 to 480—down by 26 compared to this time last year.

North America cut 12 rigs week on week, according to Baker Hughes' latest North America rotary rig count.

The number of active rigs drilling for oil and gas in the U.S. fell for a second consecutive week, shedding 2 to 590, Baker Hughes said in its latest report.

And on the production platforms where workers are sequestered for 14-day shifts, suppliers are rationing tortillas and serving nothing but beans as the state oil company racks up unpaid bills.