North America Goes Back to Adding Rigs

North America added six rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on November 7.

The total U.S. rig count increased by two week on week and the total Canada rig count increased by four during the same period, taking the total North America rig count up to 739, comprising 548 rigs from the U.S. and 191 rigs from Canada, the count outlined.

Of the total U.S. rig count of 548, 527 rigs are categorized as land rigs, 19 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, 128 gas rigs, and six miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 478 horizontal rigs, 59 directional rigs, and 11 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 two, Baker Hughes highlighted. The U.S. oil rig count remained unchanged, its gas rig count increased by three, and its miscellaneous rig count dropped by one, week on week, the count showed. The U.S. horizontal and vertical rig counts remained unchanged week on week, while the country’s directional rig count increased by two during the period, the count revealed.

A major state variances subcategory included in the rig count showed that, week on week, Louisiana added two rigs, Alaska and California each added one rig, and Texas and Wyoming each dropped one rig. A major state variances subcategory included in the rig count showed that, week on week, the Haynesville basin added one rig and the Cana Woodford, Eagle Ford, and Granite Wash basins each dropped one rig week on week.

Canada’s total rig count of 191 is made up of 129 oil rigs and 62 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil and gas rig counts each rose by two, the count revealed.

The total North America rig count is down 53 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 37 rigs and Canada has cut 16 rigs, year on year. The U.S. has dropped 65 oil rigs and added 26 gas rigs and two miscellaneous rigs, while Canada has dropped 13 oil rigs and three gas rigs, year on year, the count outlined.

In a J.P. Morgan research note dated November 7, which was sent to Rigzone by the JPM Commodities Research team on Monday, analysts at J.P. Morgan noted that “total U.S. oil and gas rigs increased by two this week to 552, according to Baker Hughes”.

“Oil focused rigs remained unchanged at 414, after decreasing by six rigs the previous week. Meanwhile, natural gas focused rigs rose by three to 128, following an increase of four 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 four to 393 rigs, while the rig count in the two major tight gas basins increased by one to 82 rigs. Miscellaneous rigs also decreased by one to six rigs,” they continued.

In the note, the J.P. Morgan analysts highlighted that the U.S. gas rig count has reached a two-year high, adding that the last time they saw similar levels was in August 2023.

“This marks the sixth consecutive weekly increase, with the total number of gas rigs up by 10 since early October,” the analysts said in the note.

“The Haynesville basin added three rigs since early October, while one additional rig was deployed in the Delaware Basin and several more across smaller regions not covered in the EIA’s Drilling Productivity Report (DPR),” they added.

“Notably, Haynesville gas-directed rigs rose by two just this week, as producers begin positioning for an expected increase in LNG feedgas demand heading into winter,” they went on to state.

In its previous rig count, which was released on October 31, Baker Hughes revealed that North America dropped 16 rigs week on week. The total U.S. rig count decreased by four week on week and the total Canada rig count decreased by 12 during the same period, that count showed.

Baker Hughes’ October 24 rig count showed that North America added three rigs week on week, its October 17 count revealed that North America added six rigs week on week, its October 10 rig count showed that North America added one rig week on week, and its October 3 count revealed that North America’s rig count remained unchanged week on week.

The company’s September 26 rig count revealed that North America added eight rigs week on week, its 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 states on its site that it has issued rig counts as a service to the petroleum industry since 1944, when Baker Hughes Tool Company began weekly counts of U.S. and Canadian drilling activity. On its site, the company describes the figures as “an important business barometer for the drilling industry and its suppliers”. The company notes on its site that working rig location information is provided in part by Enverus.

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