North America Rig Gain Continues

North America added 13 rigs week on week, according to Baker Hughes’ latest rotary rig count, which was published on June 14.

Although the U.S. dropped four rigs week on week, Canada added 17 rigs during the same period, taking the total North America rig count up to 750, comprising 590 rigs from the U.S. and 160 rigs from Canada, the count outlined.

Of the total U.S. rig count of 590, 569 are categorized as land rigs and 21 are categorized as offshore rigs. The country has 488 oil rigs, 98 gas rigs, and four miscellaneous rigs, according to the Baker Hughes count, which showed that the country has 527 horizontal rigs, 43 directional rigs, and 20 vertical rigs.

Week on week, the U.S. dropped three land rigs and one offshore rig, Baker Hughes revealed. The country cut four oil rigs week on week and its horizontal rig count dropped by four during the same period, the count highlighted. Louisiana and Texas each dropped two rigs week on week, while Oklahoma dropped one rig and New Mexico added one rig, the count outlined.

Canada’s total rig count of 160 is made up of 104 oil rigs, 55 gas rigs, and one miscellaneous rig, the count revealed. The country added 15 oil rigs, one gas rig, and one miscellaneous rig week on week, the count showed.

The total North America rig count is down 96 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 97 rigs during the period while Canada’s count increased by one. The U.S. has cut 64 oil rigs and 32 gas rigs, and one miscellaneous rig, while Canada has added one oil rig and one miscellaneous rig, and dropped one gas rig, year on year, the rig count revealed.

In a report sent to Rigzone by Standard Chartered Bank Commodities Research Head Paul Horsnell on June 18, which referred to Baker Hughes’ June 14 rig count, analysts at the bank, including Horsnell, said, “the U.S. oil rig count fell by four week on week to a 29-month low of 488, according to the latest Baker-Hughes survey”.

“The last time activity was lower was in the first week of 2022. The year on year decline stands at 64 rigs (11.6 percent) while the cumulative fall since November 2022’s post-pandemic high is 139 rigs (22.2 percent),” they added.

“Texas accounts for 51 of the 64-rig year on year decline in oil drilling, with a 21-rig decline in the state’s part of the Delaware Basin, a 15-rig decline in the Midland Basin, and an 11-rig decline in Eagle Ford. The U.S. gas count was unchanged week on week at its 33-month low of 98,” they continued.

In its previous rig count, which was released on June 7, Baker Hughes showed that North America added nine rigs week on week. Although the U.S. dropped six rigs week on week, Canada added 15 during the same time frame, that count showed.

Baker Hughes’ May 31 count showed that North America added eight rigs week on week and its 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