North America Breaks Rig Loss Streak

North America has broken a string of consecutive weekly rig losses, according to Baker Hughes’ latest rotary rig count, which was released on September 15.

The region added 17 rigs week on week, with nine of these coming from the U.S. and eight from Canada, taking North America’s total rig count up to 831, Baker Hughes outlined. Of the total North America rig count figure, 641 rigs hail from the U.S. and 190 come from Canada, the count revealed.

The total U.S. rig count comprises 619 land rigs, 19 offshore rigs, and three inland water rigs, according to the count, which showed that 515 rigs from the total U.S. count are categorized as oil rigs, 121 are categorized as gas rigs, and five are categorized as miscellaneous rigs.

Week on week, the U.S. registered nine more land rigs, Baker Hughes highlighted. The country’s oil rig count increased by two week on week, while its gas rig count increased by eight and its miscellaneous rig count dropped by one during the same timeframe, the count revealed.

Colorado, Utah, and Wyoming all added one rig each, Texas added seven rigs, and New Mexico lost one rig week on week, Baker Hughes’ rig count pointed out. 

Canada’s total rig count of 190 comprises 119 oil rigs and 71 gas rigs, Baker Hughes outlined. The country’s oil rig count climbed by six week on week and its gas rig count rose by two during the same timeframe, the count showed.

Baker Hughes’ latest rig count outlined that North America is down 143 rigs on year ago figures and showed that the U.S. has driven this decline, cutting 122 rigs during the period while Canada dropped 21 rigs. The U.S. has cut 84 oil rigs and 41 gas rigs, and added three miscellaneous rigs, year on year, while Canada has dropped 27 oil rigs and added six gas rigs year on year, the rig count revealed.

In its previous rig count, which was released on September 8, Baker Hughes revealed that North America’s rig count dropped by four week on week to 814. That count showed that 632 of these rigs were in the U.S. and 182 were in Canada and that the total U.S. rig count comprised 513 oil rigs, 113 gas rigs, and six miscellaneous rigs.

“The US oil rig count has increased for the first time in 13 weeks according to the latest Baker Hughes survey,” analysts at Standard Chartered said in a report sent to Rigzone on September 12, referring to Baker Hughes’ September 8 rig count.  

“However, the increase was just a single rig, taking activity to 513 rigs. The year to date decline is 108 rigs and the year on year decline is 78 rigs. The main week on week decrease was in the Delaware Basin of New Mexico and west Texas where activity fell by three rigs to 176 rigs,” they added.

“Elsewhere in the Permian Basin, Midland Basin activity rose one to 112 rigs and other Permian activity rose by three rigs to 29 rigs. Oil drilling activity in the Bakken region of North Dakota and Montana has weakened further, with the rig count falling one to a 19-month low of 31 rigs. The U.S. gas rig count fell one to a 19-month low of 113 rigs, taking the year on year decline to 53 rigs (31.9 percent),” the analysts continued.

Baker Hughes’ September 1 count showed that North America dropped four rigs week on week, its August 25 count showed that North America dropped nine rigs week on week, its August 18 count showed that the region dropped 13 rigs week on week, its August 11 count showed that North America dropped three rigs week on week, and its August 4 count showed that North America dropped 10 rigs week on week.

Baker Hughes’ 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. The company’s 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