North America Breaks Rig Gain Streak

North America’s total rig count remained unchanged week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on October 3.

The total U.S. rig count and the total Canada rig count didn’t budge week on week, which meant the total North America rig count remained at 739 during the same period, comprising 549 rigs from the U.S. and 190 rigs from Canada, the count outlined.

Of the total U.S. rig count of 549, 531 rigs are categorized as land rigs, 15 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 422 oil rigs, 118 gas rigs, and nine miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 479 horizontal rigs, 58 directional rigs, and 12 vertical rigs.

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

A major state variances subcategory included in the rig count showed that, week on week, Louisiana, New Mexico, Oklahoma, and Utah each added one rig, Texas dropped two rigs, and Pennsylvania and Wyoming each dropped one rig. A major basin variances subcategory included in Baker Hughes’ rig count showed that, week on week, the Cana Woodford basin added one rig, the Permian basin dropped two rigs, and the Marcellus basin dropped one rig.

Canada’s total rig count of 190 is made up of 129 oil rigs, 60 gas rigs, and one miscellaneous rig, Baker Hughes pointed out. Week on week, the country’s oil, gas, and miscellaneous rig counts remained unchanged, the count revealed.

The total North America rig count is down 69 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 36 rigs and Canada has cut 33 rigs, year on year. The U.S. has dropped 57 oil rigs and added 16 gas rigs and five miscellaneous rigs, while Canada has dropped 28 oil rigs, three gas rigs, and two miscellaneous rigs, year on year, the count outlined.

In a report sent to Rigzone by the JPM Commodities Research team on Monday, analysts at J.P. Morgan highlighted that “total U.S. oil and gas rigs were unchanged this week at 549, according to Baker Hughes”.

“Oil focused rigs saw a decrease of two, bringing the total to 422, following the addition of six rigs the previous week. Meanwhile, natural gas focused rigs increased by one to 118 following a decrease of one rig last week,” they added.

“The rig count in the five major tight oil basins – we use the EIA [U.S. Energy Information Administration] basin definition – decreased by three to 401 rigs, while the rig count in the two major tight gas basins decreased by one to 83 rigs. Miscellaneous rigs increased by one, reaching nine, which marks the highest count on record,” they continued.

“Oil rig counts normalized this week, decreasing by two after a six-rig jump last week. In the natural gas category, there was a net addition of one rig: two new rigs were added in the ‘other’ category – likely in the Green River and San Juan basins – while the Marcellus saw a reduction of one rig,” the analysts went on to state.

In its previous rig count, which was released on September 26, Baker Hughes revealed that North America added eight rigs week on week. The U.S. added seven rigs and Canada added one rig week on week, that count revealed.

Baker Hughes’ September 19 rig count revealed that North America added six rigs week on week, its September 12 rig count showed that North America added seven rigs week on week, and its September 5 rig count also revealed that North America added seven rigs week on week.

In its August 29 rig count, Baker Hughes showed that North America cut seven rigs week on week. The company’s August 22 rig count showed that North America cut four rigs week on week, its August 15 rig count revealed that North America added three rigs week on week, and its August 8 rig count revealed that North America added two rigs week on week.

Baker Hughes’ August 1 rig count 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