North America Rig Losses Continue

North America dropped rigs again week on week, Baker Hughes’ latest rotary rig count, which was released on September 1, revealed.

The region cut four rigs week on week, taking its total count to 818, according to Baker Hughes, which showed that the U.S. dropped one rig week on week while Canada cut three rigs during the same timeframe.

The total U.S. rig count now stands at 631, comprising 611 land rigs, 17 offshore rigs, and three inland water rigs, Baker Hughes’ count showed. Of the total rig count of 631, 512 rigs are categorized as oil rigs, 114 as gas rigs, and five as miscellaneous rigs.

The U.S. had two fewer land rigs and one more offshore rig week on week, according to the count, which highlighted that the country’s gas rig count dropped by one during the same timeframe. Texas and West Virginia each dropped one rig week on week, while Colorado added one rig, the count pointed out.

Canada’s total rig count of 187 is made up of 115 oil rigs and 72 gas rigs, Baker Hughes’ rig count revealed. The country had two fewer gas rigs and one less oil rig week on week, the count highlighted.

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 129 rigs during the period while Canada dropped 21 rigs. The U.S. has cut 84 oil rigs and 48 gas rigs, and added three miscellaneous rigs, year on year, while Canada has dropped 28 oil rigs and added seven gas rigs year on year, the rig count revealed.

In its last rig count, which was released on August 25, Baker Hughes revealed that North America’s rig count dropped by nine week on week to 822. That count showed that 632 of these rigs were in the U.S. and 190 were in Canada and that the total U.S. rig count comprised 512 oil rigs, 115 gas rigs, and five miscellaneous rigs.

“The U.S. oil rig count fell by eight week on week to an 18-month low of 512 rigs, according to the latest Baker-Hughes survey,” analysts at Standard Chartered said in a report sent to Rigzone on August 29, referring to Baker Hughes’ August 25 rig count.  

“The oil rig count has only increased once in the past 18 weeks and just five times year to date. It is 93 rigs lower year on year and 109 rigs lower year to date. The largest week on week declines in activity were in the New Mexico part of the Delaware Basin, where the rig count fell by four to 103,” the analysts added in the report.

Baker Hughes’ 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