North America Finally Breaks Rig Loss Run

North America’s total rig count remained unchanged week on week, according to Baker Hughes’ latest North America rotary rig count, which was published late Friday.

Although the U.S. dropped one rig week on week, Canada added one rig during the same timeframe, leaving the total North America rig count at 784, Baker Hughes’ count outlined. The total North America rig count figure comprises 583 rigs from the U.S. and 201 rigs from Canada, the count showed.

Of the total U.S. rig count of 583, 568 are categorized as land rigs, 13 are categorized as offshore rigs, and two are categorized as inland water rigs. This total rig count is made up of 479 oil rigs, 99 gas rigs, and five miscellaneous rigs, according to the count, which highlights that the total includes 521 horizontal rigs, 46 directional rigs, and 16 vertical rigs.

Week on week, the U.S. cut one offshore rig and its inland water and offshore rig counts remained unchanged, the count revealed. During this timeframe, the country’s gas rig count decreased by two, its oil rig count increased by one, and its miscellaneous rig count remained unchanged week on week, while its directional rig count dropped by two, its horizontal rig count increased by one, and its vertical rig count remained identical, the count outlined.

Baker Hughes’ count revealed that Louisiana dropped three rigs, and California and Colorado each dropped one rig week on week, while Texas added two rigs, and Oklahoma and Wyoming each added one rig week on week.

Canada’s total rig count of 201 comprises 133 oil rigs, 67 gas rigs, and one miscellaneous rig, Baker Hughes’ count showed. The country cut four oil rigs and added four gas rigs and one miscellaneous rig week on week, the count highlighted.

The total North America rig count is down 35 rigs compared to year ago levels, according to Baker Hughes, which outlined that the U.S. has driven this decline, cutting 39 rigs during the period while Canada’s count increased by four. The U.S. has cut 21 oil rigs and 18 gas rigs, while its miscellaneous count remined unchanged, and Canada has added nine oil rigs and one miscellaneous rig, while its gas rig count dropped by six, 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 highlighted that “total U.S. oil and gas rigs fell by one to 583 this week”.

“Oil focused operators rose by one to 479 rigs, reversing last week’s loss of one. Natural gas focused rigs fell by two to 99 rigs, retreating below the 100 rig count mark again,” they added.

“This week, the rig count in the major tight oil basins increased by four, marking the largest weekly gain since early September, when the count rose by six rigs. Both the Anadarko and Eagle Ford regions saw an addition of two rigs each, while all other basins remained unchanged,” they continued.

“Currently, we are just nine rigs shy of our December exit forecast for the 2024 rig count. Any further drilling activity between now and the year’s end is likely to result in production materializing in 2025,” the analysts went on to state.

Looking ahead in the note, the J.P. Morgan analysts said they anticipate total U.S. crude and condensate production to grow by 370,000 barrels per day in 2025, “followed by a more modest increase of just 77,000 barrels per day in 2026”.

In its previous rig count, which was released on November 15, Baker Hughes revealed that North America dropped eight rigs week on week. The total U.S. rig count decreased by one rig week on week and the total Canada rig count dropped by seven rigs week on week, that count outlined.

Baker Hughes’ November 8 rig count showed that North America dropped six rigs week on week, its November 1 count showed that North America dropped three rigs week on week, and its October 25 count revealed that North America dropped one rig week on week. The company’s October 18 count revealed that North America dropped three rigs week on week and its October 11 rig count also showed 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.

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