North America Loses More Rigs

Wedoany.com Report-Nov 13,  North America dropped six rigs week on week, according to Baker Hughes’ latest rotary rig count, which was released on November 8.

Although the total U.S. rig count remained unchanged week on week, the total Canada rig count dropped by six in the same timeframe, taking the total North America rig count down to 792, comprising 585 rigs from the U.S. and 207 rigs from Canada, Baker Hughes’ count outlined.

Of the total U.S. rig count of 585, 569 are classified as land rigs, 14 are categorized as offshore rigs, and two are classified as an inland water rigs. The total U.S. rig count is made up of 479 oil rigs, 102 gas rigs, and four miscellaneous rigs, according to Baker Hughes, which showed that this total comprised 520 horizontal rigs, 49 directional rigs, and 16 vertical rigs.

Baker Hughes’ count revealed that, week on week, the U.S. dropped two offshore rigs and added one land rig and one inland water rig. The country’s oil, gas, and miscellaneous rig counts remained unchanged during the period, the count highlighted. The U.S. horizontal rig count increased by three, while its vertical rig count dropped by two and its directional rig count dropped by one, week on week, the count showed.

A subcategory of major state variances in the Baker Hughes count outlined that Louisiana dropped three rigs and Colorado dropped one rig week on week, while Oklahoma added two rigs, and Pennsylvania and Wyoming each added one rig. 

Canada’s total rig count of 207 is made up of 142 oil rigs and 65 gas rigs, Baker Hughes’ count revealed. The country dropped four oil rigs and two gas rigs week on week, the count showed.

The total North America rig count is down 23 compared to year ago levels, according to Baker Hughes, which outlined that the U.S. has driven this decline, cutting 31 rigs during the period while Canada’s count increased by eight. The U.S. has cut 15 oil rigs and 16 gas rigs, while Canada has added 17 oil rigs, and cut nine gas rigs, year on year, the count revealed.

In a research note sent to Rigzone on Friday by the JPM Commodities Research team, J.P. Morgan analysts noted that “total U.S. oil and gas rigs remained flat at 585 this week, according to Baker Hughes”.

“Oil focused operators remained flat at 479 rigs, following last week’s loss of one. Natural gas focused rigs remained flat at 102 rigs, after last week’s gain of one,” the analysts added.

“The rig count in the major tight oil basins rose by one, as the Eagle Ford gained one rig and all other regions remained unchanged. Despite the overall stability in oil and gas rig counts, drilling activity in the key counties we monitor for oil production rose by one,” they continued.

“The gap between the total rig count and the major oil producing counties we track has narrowed to its lowest point this year, now standing at just 24 rigs, down from a peak of 35 rigs in August. As the year draws to a close, oil drillers continue to consolidate their efforts, concentrating on the core regions that are pivotal for oil production,” the analysts went on to state.

In its previous rig count, which was released on November 1, Baker Hughes revealed that North America dropped three rigs week on week. The total U.S. rig count remained unchanged and the total Canada rig count dropped by three week on week, that count outlined.

Baker Hughes’ October 25 count revealed that North America dropped one rig week on week, its October 18 count showed that North America dropped three rigs week on week, and its October 11 rig count also revealed that North America dropped three rigs week on week.

Baker Hughes’ October 4 count showed that North America added three rigs week on week and its September 27 count revealed that North America added six rigs week on week.

The company’s September 20 rig count showed that North America dropped nine rigs week on week, its September 13 rig count showed that North America added six rigs week on week, its September 6 rig count revealed that North America dropped one rig week on week, and its August 30 rig count also showed that North America dropped one rig week on week.

Baker Hughes’ August 23 count revealed that North America added one rig week on week, its August 16 count revealed that North America dropped two rigs week on week, and its August 9 count showed that North America’s rig count stayed flat week on week.

Baker Hughes’ August 2 rig count showed that North America added five rigs week on week, its July 26 count showed that North America added 17 rigs week on week, its July 19 count revealed North America added 10 rigs week on week, and its July 12 count showed that North America added 13 rigs week on week.

The company’s July 5 count revealed that North America added three rigs week on week, its June 28 count also showed that North America added three rigs week on week, its June 21 rig count revealed that North America added four rigs week on week, and its June 14 count showed that North America added 13 rigs week on week.

Baker Hughes’ June 7 count revealed that North America added nine rigs week on week, its May 31 count showed that North America added eight rigs week on week, and its May 24 rig count highlighted that North America added two rigs week on week.

The company’s May 17 count revealed that North America dropped one rig week on week, its May 10 count showed that North America dropped six rigs week on week, its May 3 count also showed that North America dropped six rigs week on week, its April 26 count showed that North America dropped 15 rigs week on week, and its April 19 count showed that North America cut 12 rigs week on week.

Baker Hughes’ April 12 count revealed that North America added two rigs week on week, and its April 5 count showed that North America cut 16 rigs week on week.

The company’s March 28 count revealed that North America dropped 21 rigs week on week, its March 22 count showed that the region cut 43 rigs week on week, its March 15 count showed that the region cut 11 rigs week on week, and its March 8 rig count showed that North America dropped 13 rigs week on week.

Baker Hughes’ March 1 rig count revealed that North America added three rigs week on week, its February 23 rig count showed that North America added two rigs week on week, and its February 16 count showed that North America’s rig count remained unchanged week on week.

The company’s February 9 rig count revealed that North America increased its rig count by four rigs week on week, its February 2 count showed that North America’s rig count stayed flat week on week, and its January 26 rig count showed that North America increased its rig count by eight rigs week on week.

Baker Hughes’ January 19 count revealed that North America increased its rig count by 11 rigs week on week, its January 12 rig count showed that North America increased its rig count by 86 rigs week on week, and its January 5 rig count, which marked the company’s first rotary rig count of 2024, showed that North America added 38 rigs week on week.

The company’s final rotary rig count of 2023 showed a notable week on week and year on year drop for North America. The region’s rig count decreased by 58 week on week and by 155 year on year, according to that count, which was released on December 29.

Baker Hughes, which has issued rotary rig counts to the petroleum industry since 1944, describes the figures as an important business barometer for the drilling industry and its suppliers. The company notes that working rig location information is provided in part by Enverus.