North America Loses More Rigs

North America continued its rig loss streak, dropping four rigs week on week, Baker Hughes’ latest rotary rig count, which was released on September 8, showed.

The region now has 814 rigs, comprising 632 from the U.S. and 182 from Canada, according to the count, which revealed that the U.S. added one rig week on week, while Canada dropped five rigs during the same timeframe.

The total U.S. rig count of 632 is made up of 610 land rigs, 19 offshore rigs, and three inland water rigs, the count highlighted. Of the total rig count of 632, 513 rigs are categorized as oil rigs, 113 are categorized as gas rigs, six are categorized as miscellaneous rigs.

The U.S. registered one less land rig and two additional offshore rigs week on week, according to Baker Hughes’ count, which showed that the country added one oil rig and one miscellaneous rig, and dropped one gas rig, week on week. Texas and California were shown to have added rigs week on week, while New Mexico, North Dakota, Utah, and West Virginia were shown to have dropped rigs.

Texas added four rigs, California added three rigs, New Mexico and North Dakota each dropped three rigs, and Utah and West Virginia each dropped one rig, the count outlined.

Canada’s total rig count of 182 comprises 113 oil rigs and 69 gas rigs, Baker Hughes revealed. The country dropped two oil rigs and three gas rigs week on week, the count pointed out. 

Baker Hughes’ latest rig count outlined that North America is down 150 rigs on year ago figures and showed that the U.S. has driven this decline, cutting 127 rigs during the period while Canada dropped 23 rigs. The U.S. has cut 78 oil rigs and 53 gas rigs, and added four miscellaneous rigs, year on year, while Canada has dropped 27 oil rigs and added four gas rigs year on year, the rig count revealed.

In its previous rig count, which was released on September 1, Baker Hughes revealed that North America’s rig count dropped by four week on week to 818. That count showed that 631 of these rigs were in the U.S. and 187 were in Canada and that the total U.S. rig count comprised 512 oil rigs, 114 gas rigs, and five miscellaneous rigs.

“The U.S. oil rig count was unchanged at 512, according to the latest weekly Baker-Hughes survey; the year to date decline in drilling is 109 rigs and the year on year decline is 84 rigs,” analysts at Standard Chartered said in a report sent to Rigzone on September 5, referring to Baker Hughes’ September 1 rig count.  

“The last time (during the pre-pandemic era) that the oil rig count was this low was December 2016, when WTI was close to $50 per barrel, more than $35 per barrel below the current price,” the analysts added in that report.

Baker Hughes’ August 25 count showed that North America dropped nine rigs week on week, its August 18 count showed that North America dropped 13 rigs week on week, its August 11 count showed that the region dropped three rigs week on week, and its August 4 count showed that North America dropped 10 rigs week on week.

The company’s July 28 count revealed that North America added one rig week on week, its July 21 count showed that North America lost six rigs week on week, and its July 14 count showed that North America added seven rigs week on week. Baker Hughes’ July 7 count highlighted that the region added 14 rigs week on week, and its June 30 count showed that the region dropped 10 rigs week on week.

Prior to the rig count released on June 30, North America had been on a streak of rig additions. The company’s June 23 count outlined that North America increased its rig count by five week on week and its June 16 count showed that North America added 15 rigs week on week. In the rig count prior to that, which was published on June 9, Baker Hughes revealed that North America had finally broken a rig loss streak which had gone on for several weeks. The region was shown in that count to have added 38 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