USA Rig Reduction Stretches North America Rig Loss Streak

North America dropped another 16 rigs week on week, according to Baker Hughes’ latest rotary rig count, which was posted on May 12.

Although Canada added one rig week on week, the U.S. dropped 17 rigs during the same timeframe, taking the total North America rig count down to 825, comprising 731 rigs in the U.S. and 94 rigs in Canada, Baker Hughes’ count outlined.

Canada added three oil rigs and dropped two gas rigs week on week, while the U.S. added one miscellaneous rig and dropped 16 gas rigs and two oil rigs week on week, according to the count, which showed that the country had 18 fewer land rigs and one more offshore rig, week on week. Alaska, Louisiana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia, and Wyoming all dropped rigs week on week, with Louisiana and Wyoming seeing the most weekly losses with four each, the count showed.

The total Canada rig count of 94 comprises 37 oil rigs and 57 gas rigs, according to Baker Hughes. The total U.S. rig count of 731 is made up of 586 oil rigs, 141 gas rigs, and four miscellaneous rigs, the count pointed out. Of the U.S. total, 707 rigs are categorized as land rigs, 22 are categorized as offshore rigs, and two are categorized as inland water rigs.

North America has added 23 rigs year on year, according to Baker Hughes’ count, which highlighted that the U.S. added 17 of these rigs and Canada added six. The U.S. added 23 oil rigs and two miscellaneous rigs year on year, and dropped eight gas rigs, while Canada added six gas rigs year on year, the count outlined.

In its previous rig count, which was posted on May 5, Baker Hughes revealed that North America cut seven rigs week on week and in the rig count before that, which was posted on April 28, the company showed that North America dropped 10 rigs week on week. The company’s April 21 rig count showed that the region dropped one rig week on week, its April 14 rig count showed that the region dropped 19 rigs week on week, and its rig count published on April 6 revealed that the region dropped 16 rigs week on week.

Baker Hughes’ March 31 rig count showed that North America cut 29 rigs week on week, its March 24 count showed that the region dropped 38 rigs week on week, and its March 17 rig count showed that the region dropped eight rigs week on week. Baker Hughes’ March 10 rig count also showed a 26-rig week on week drop in North America, and its March 3 count revealed that North America had cut two rigs week on week.

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, which produces daily rig counts using GPS tracking units.

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