North America Continues Streak of Rig Additions

North America added nine rigs week on week, according to Baker Hughes’ latest rotary rig count, which was released on June 7.

Although the U.S. dropped six rigs week on week, Canada added 15 during the same time frame, taking the total North America rig count up to 737, comprising 594 rigs from the U.S. and 143 rigs from Canada, the count outlined.

Of the total U.S. rig count of 594, 572 rigs are classified as land rigs and 22 are classified as offshore rigs. The country has 492 oil rigs, 98 gas rigs, and four miscellaneous rigs, the count highlighted. Of the total U.S. rig count figure, 531 are categorized as horizontal rigs, 43 are categorized as directional rigs, and 20 are categorized as vertical rigs.

Week on week, the U.S. dropped six land rigs, and its oil rig count reduced by four while its gas rig count was cut by two, Baker Hughes revealed. The country cut five horizontal rigs and one directional rig week on week, Baker Hughes outlined.

Oklahoma cut four rigs and Louisiana, Pennsylvania, and West Virginia each cut one rig, while California added one rig, week on week, the count showed.

Canada’s total rig count of 143 is made up of 89 oil rigs and 54 gas rigs, Baker Hughes pointed out. The country’s gas rig count stayed flat week on week and its oil rig count increased by 15 during the period, Baker Hughes revealed.

The total North America rig count is down 94 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 101 rigs during the period while Canada’s count increased by seven. The U.S. has cut 64 oil rigs and 37 gas rigs, while Canada has added four oil rigs and three gas rigs, year on year, the rig count revealed.

In its previous rig count, which was released on May 31, Baker Hughes showed that North America added eight rigs week on week. Although the U.S. rig count stayed flat week on week, Canada added eight during the same period, that count outlined.

In a report sent to Rigzone by Standard Chartered Bank Commodities Research Head Paul Horsnell on June 4, which referred to Baker Hughes’ May 31 rig count, analysts at the bank, including Horsnell, said, “the U.S. oil rig count fell by a single rig week on week to a six-month low of 496, according to the latest Baker-Hughes survey”.

“The horizontal oil rig count (a proxy for shale oil activity) fell by two to 446, bringing the cumulative decline over the past four weeks to 12 rigs. The largest week on week fall in activity was in the SCOOP region of Oklahoma where the rig count fell by four to 12, just a single rig above the 30-month low,” they added.

“The largest single week increase was also in Oklahoma with activity in the Ardmore-Woodford formation rising by three to seven rigs. In the Permian Basin, Delaware Basin activity fell by one to 170 rigs, Midland Basin activity fell by two to 113 rigs and other Permian activity rose by one to 27 rigs,” they continued.

Baker Hughes’ May 24 rig count showed that North America added two rigs week on week.

The company’s May 17 count revealed 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.

Source: www.rigzone.com