North America added eight rigs week on week, according to Baker Hughes’ latest rig count, which was released on May 31.
While the U.S. rig count stayed flat, Canada added eight rigs week on week, pushing the total North America rig count up to 728, comprising 600 rigs from the U.S. and 128 rigs from Canada, the count outlined.
Of the total U.S. rig count of 600, 578 are categorized as land rigs and 22 are categorized as offshore rigs. The U.S. rig count is made up of 496 oil rigs, 100 gas rigs, and four miscellaneous rigs, according to Baker Hughes, which revealed that the country’s horizontal rig count stood at 536, its directional rig count was 44, and its vertical rig count was 20.
Week on week, Louisiana and Pennsylvania each added one rig and New Mexico and Oklahoma each dropped one rig, the count showed. The U.S. added one land rig and dropped one offshore rig week on week and increased its gas rig count by one while its oil rig count dropped by one during the same period, the count revealed. The country added one directional rig and dropped one horizontal rig week on week, the count highlighted.
Canada’s total rig count of 128 is made up of 74 oil rigs and 54 gas rigs, Baker Hughes pointed out. The country’s gas rig count dropped by two week on week and its oil rig count increased by 10 during the period, Baker Hughes showed.
The total North America rig count is down 65 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 96 rigs during the period while Canada’s count increased by 31. The U.S. has cut 59 oil rigs and 37 gas rigs, while Canada has added eight gas rigs and 23 oil rigs, year on year, the rig count revealed.
In its previous rig count, which was released on May 24, Baker Hughes showed that North America added two rigs week on week. Although the U.S. lost four rigs week on week, Canada added six during the same period, that count outlined.
In a report sent to Rigzone by Standard Chartered Bank Commodities Research Head Paul Horsnell on May 29, which referred to Baker Hughes’ May 24 rig count, analysts at the bank, including Horsnell, said, “the U.S. gas rig count has fallen below 100 for the first time in 31 months according to the latest Baker-Hughes survey”.
“The rig count fell by four week on week to 99. While drilling in the Marcellus region fell by two rigs to a 31-month low of 27 rigs, a single rig was added in Haynesville, taking activity there to 37 rigs,” they added.
“The U.S. oil rig count was unchanged at 497, taking the year on year decline to 73 rigs (12.8 percent), while the horizontal oil rig count (a proxy for shale oil activity) fell three to a six-month low of 448,” they continued.
In that report, the analysts went on to note that, “in the key shale oil regions, activity in the Texas part of the Delaware Basin fell by two to a 26-month low of 66 rigs, while activity in the New Mexico part of the basin rose by one to 104 rigs”.
“The Midland Basin rig count was unchanged at 115 rigs, while other Permian activity rose by one to 26 rigs. The Bakken region of North Dakota and Montana remains the least dynamic among the major areas; the rig count has been 34 for 20 consecutive weeks and it has been in a 32-34 range for 37 consecutive weeks,” they added.
“Oil prices have moved across a $23 per barrel range over the same period, implying that short-run price elasticity of supply in the Bakken has become extremely limited,” the analysts went on to state.
Baker Hughes’ May 17 count showed that North America dropped one rig week on week, its May 10 count showed that North America dropped six rigs week on week, and its May 3 count also showed that North America dropped six rigs week on week. The company’s 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.
