North America Drops Rigs for First Time in Months

North America dropped two rigs week on week, according to Baker Hughes’ latest rotary rig count, which was published on August 16.

The U.S. cut two rigs during the period, while Canada’s rig count remained unchanged week on week, taking the total North America rig count down to 803, comprising 586 rigs from the U.S. and 217 rigs from Canada, the count outlined.

Of the total U.S. rig count of 586, 567 are categorized as land rigs and 19 are categorized as offshore rigs. The total U.S. rig count comprises 483 oil rigs, 98 gas rigs, and five miscellaneous rigs, according to the count, which shows that this total figure is made up of 521 horizontal rigs, 48 directional rigs, and 17 vertical rigs.

Week on week, the U.S. dropped two land rigs, the count revealed. The country’s oil rig count dropped by two, and its miscellaneous rig count dropped by one week on week, while its gas rig count increased by one during the same timeframe, Baker Hughes highlighted. The U.S. dropped two directional rigs week on week, the count showed.

Baker Hughes revealed that Texas dropped three rigs and Ohio dropped one rig week on week, while Oklahoma added two rigs week on week.

Canada’s total rig count of 217 is made up of 151 oil rigs and 66 gas rigs, the count highlighted. Canada added four oil rigs and cut three gas rigs and one miscellaneous rig week on week, Baker Hughes showed.

The total North America rig count is down 28 compared to year ago levels, according to Baker Hughes, which outlined that the U.S. has driven this decline, cutting 56 rigs during the period while Canada’s count increased by 28. The U.S. has cut 37 oil rigs and 19 gas rigs while Canada has added 32 oil rigs and cut four gas rigs, year on year, the rig count revealed.

In its previous rig count, which was published on August 9, Baker Hughes showed that North America’s rig count stayed flat week on week. The U.S. added two rigs and Canada dropped two rigs week on week, that count showed.

In a report sent to Rigzone by Standard Chartered Bank Commodities Research Head Paul Horsnell on August 13, which referred to Baker Hughes’ August 9 rig count, analysts at the bank, including Horsnell, said, “the U.S. oil rig count rose by three week on week to 485 according to the latest Baker-Hughes survey, bringing the cumulative increase since July’s 30-month low to eight rigs”.

“The latest increase was centered in the Rockies, with activity in Wyoming’s Powder River Basin gaining two rigs week on week to 10 rigs and activity in Colorado’s DJ Basin rising by a single rig also to 10 rigs,” they added.

“Within the Permian Basin, Delaware Basin activity was unchanged at 171 rigs, Midland Basin activity was unchanged at 105 rigs and other Permian activity rose by one to 28 rigs. The U.S. gas rig count fell by one to a three-year low of 97, with activity in the Haynesville region falling by two to a 47-month low of 34 rigs, just three rigs higher than the low reached during the pandemic,” they continued.

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 the 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 obtains its working rig location information in part from Enverus.

To contact the author, email andreas.exarheas@rigzone.com