North America Breaks Rig Loss Streak

North America added seven rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on September 5.

The U.S. added one rig and Canada added six rigs week on week, taking the total North America rig count up to 718, comprising 537 rigs from the U.S. and 181 rigs from Canada, the count outlined.

Of the total U.S. rig count of 537, 522 rigs are categorized as land rigs, 13 are categorized as offshore rigs, and two are categorized as inland water rigs. The total U.S. rig count is made up of 414 oil rigs, 118 gas rigs, and five miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 470 horizontal rigs, 54 directional rigs, and 13 vertical rigs.

Week on week, the U.S. offshore and inland water rig counts remained unchanged and the country’s land rig count increased by one, Baker Hughes highlighted. The U.S. gas rig count dropped by one, the country’s oil rig count increased by two, and its miscellaneous rig count remained unchanged week on week, the count showed. The U.S. directional rig count dropped by one, week on week, while its horizontal rig count increased by two and its vertical rig count remained unchanged during the same period, the count revealed.

A major state variances subcategory included in the rig count showed that, week on week, Texas added two rigs and New Mexico dropped two rigs. A major basin variances subcategory included in Baker Hughes’ rig count showed that, week on week, the Permian basin dropped one rig.

Canada’s total rig count of 181 is made up of 123 oil rigs and 58 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil rig count increased by three, its gas rig count increased by three, and its miscellaneous rig count remained unchanged, the count revealed.

The total North America rig count is down 84 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 45 rigs and Canada has cut 39 rigs, year on year. The U.S. has dropped 69 oil rigs and added 24 gas rigs, while Canada has dropped 29 oil rigs, nine gas rigs, and one miscellaneous rig, year on year, the count outlined.

In a J.P. Morgan research note sent to Rigzone by the JPM Commodities Research team on Friday, J.P. Morgan analysts noted that “total U.S. oil and gas rigs increased by one to 537 this week, according to Baker Hughes”.

“Oil focused rigs saw an increase of two, bringing the total to 414, following the addition of one rig the previous week. Meanwhile, natural gas focused rigs decreased by one, to 118, after a week over week decrease of three rigs last week,” the analysts added.

“The rig count in the five major tight oil basins – we use the EIA [U.S. Energy Information Administration] basin definition – decreased by one to 397 rigs, while the rig count in the two major tight gas basins increased by one to 81 rigs. The miscellaneous rig count remained unchanged and accounted for five rigs,” they continued.

“Since July 25, the number of oil rigs has held steady, marking a pause in the notable downward trend observed since late April. By year-end 2025, we anticipate the rig count in the main oil basins to decline to 375 from the current 397 rigs,” they said.

The analysts went on to highlight in the note that the EIA recently released its estimate for U.S. oil production in June, which they said exceeded their expectations by 60,000 barrels per day.

“According to the data, oil production rose to 13,580 kbd, up 328 kbd year on year (our estimate was 13,520 kbd),” the analysts stated in the note.

“Nearly all of this growth remains concentrated in two regions: the Permian Basin, where production in Delaware NM increased by almost 260 kbd YoY, and the Gulf of Mexico[/America], which saw a 100 kbd YoY increase,” they added.

“It is worth noting that in Delaware NM, 10 rigs were lost between early April and early June, yet production remains at historic highs, reflecting company statements about improved efficiency,” they continued.

“Additionally, condensate production continues to be robust in the Appalachia gas basin, supported by steady growth in gas output, with condensate production rising by about 50 kbd YoY in recent months,” the analysts said.

“As a result, U.S. crude and condensate production grew by 278 kbd in the first half of the year. We expect the second half to also show steady growth, with total U.S. production rising by 266 kbd for the full year 2025,” the J.P. Morgan analysts went on to state in the note.

Rigzone has contacted the U.S. Department of Energy (DOE) and industry body the American Petroleum Institute (API) for comment on the J.P. Morgan research note. At the time of writing, neither have responded to Rigzone.

In its previous rig count, which was released on August 29, Baker Hughes revealed that North America cut seven rigs week on week. The U.S. cut two rigs and Canada cut five rigs week on week, that count showed. Baker Hughes’ August 22 rig count showed that North America cut four rigs week on week.

In its August 15 rig count, Baker Hughes revealed that North America added three rigs week on week and in its August 8 rig count, the company revealed that North America added two rigs week on week.

In its August 1 rig count, Baker Hughes showed that North America dropped seven rigs week on week. Its July 25 rig count revealed that North America added eight rigs week on week, its July 18 count showed that North America added 17 rigs week on week, its July 11 rig count showed that North America added nine rigs week on week, and its July 3 count highlighted that North America added three rigs week on week.

In its June 27 rig count, Baker Hughes revealed that North America dropped six rigs week on week. The company’s June 20 rig count showed that the total North America rig count remained unchanged week on week, its June 13 rig count showed that North America added 20 rigs week on week, and its June 6 rig count showed that North America cut two rigs week on week.

Baker Hughes’ May 30 rig count revealed that North America dropped five rigs week on week, its May 23 count showed that North America dropped 17 rigs week on week, and its May 16 rig count showed that North America added five rigs week on week. The company’s May 9 rig count revealed that North America cut 12 rigs week on week, its May 2 count revealed that North America dropped 11 rigs week on week, and its April 25 count showed that North America dropped four rigs week on week.

Baker Hughes’ April 17 count showed that North America dropped two rigs week on week, its April 11 rig count revealed that North America cut 22 rigs week on week, the company’s April 4 rig count showed that North America cut 12 rigs week on week, its March 28 count revealed that North America cut 18 rigs week on week, and its March 21 rig count also revealed that North America cut 18 rigs week on week. Baker Hughes’ March 14 count showed that North America dropped 35 rigs week on week and its March 7 rig count revealed North America cut 15 rigs week on week.

In its February 28 rig count, Baker Hughes showed that North America added five rigs week on week. Its February 21 count revealed that North America added three rigs week on week, its February 14 rig count showed that North America dropped two rigs week on week, and its January 31 rig count showed that North America added 19 rigs week on week.

The company’s January 24 rig count revealed that North America added 12 rigs week on week, its January 17 count showed that North America added nine rigs week on week, and its January 10 rig count outlined that North America added 117 rigs week on week.

Baker Hughes’ January 3 rig count revealed that North America dropped one rig week on week and its December 27 rig count showed that North America dropped 71 rigs week on week.

Baker Hughes, which has issued rotary rig counts since 1944, describes the figures as an important business barometer for the drilling industry and its suppliers. The company notes that working rig location information is provided in part by Enverus.

To contact the author, email andreas.exarheas@rigzone.com