North America Drops 11 Rigs WoW

North America dropped 11 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on February 27.

The total U.S. rig count dropped by one week on week and the total Canada rig count dropped by 10 during the same period, pushing the total North America rig count down to 764, comprising 550 rigs from the U.S. and 214 rigs from Canada, the count outlined.

Of the total U.S. rig count of 550, 531 rigs are categorized as land rigs, 17 are categorized as offshore rigs, and two are categorized as inland water rigs. The total U.S. rig count is made up of 407 oil rigs, 134 gas rigs, and nine miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 483 horizontal rigs, 55 directional rigs, and 12 vertical rigs.

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

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

Canada’s total rig count of 214 is made up of 145 oil rigs and 69 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil rig count decreased by eight, its gas rig count dropped by two, and its miscellaneous rig count remained unchanged, the count revealed.

The total North America rig count is down 77 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 43 rigs and Canada has cut 34 rigs, year on year. The U.S. has dropped 79 oil rigs and added 32 gas rigs and four miscellaneous rigs, while Canada has dropped 32 oil rigs and two gas rigs, year on year, the count outlined.

In a J.P. Morgan report sent to Rigzone on Saturday by the JPM Commodities Research team, analysts at J.P. Morgan noted that “total U.S. oil and gas rigs decreased by one this week to 550, according to Baker Hughes”.

“Oil focused rigs decreased by two to 407, after an unchanged level the previous week. Meanwhile, natural gas-focused rigs increased by one to 134, following an unchanged period the previous week,” they added.

“The rig count in the five major tight oil basins – we use the EIA [U.S. Energy Information Administration] basin definition – increased by one to 386 rigs, while the count in the two major tight gas basins remained unchanged at 95. Miscellaneous rigs remained unchanged at nine rigs,” it continued.

In the report, the J.P. Morgan analysts highlighted that December 2025 U.S. production data had been released, “allowing us to summarize both monthly dynamics and full-year outcomes”. 

“U.S. crude production declined by 133,000 barrels per day month on month in December – around 60,000 barrels per day weaker than our expectations,” they said.

“NGL production fell sharply by nearly 250,000 barrels per day month on month to 7.6 million barrels per day, implying a combined liquids decline of almost 400,000 barrels per day compared with November,” they added.

The decline was driven by several temporary factors, according to the analysts.

“Bakken (North Dakota) production dropped by roughly 80,000 barrels per day amid severe freeze-offs, while an additional 70,000 barrel per day decline was observed in the New Mexico Delaware Basin, likely linked to mid-December maintenance on the El Paso Natural Gas system and associated operational constraints,” they noted.

“The largest hit to NGL supply came from the Anadarko Basin, where output fell by nearly 90,000 barrels per day – likely due to weather-related disruptions and lower gas‑processing recoveries. Appalachia saw a drop of about 130,000 barrels per day, reflecting increased ethane rejection amid stronger winter gas prices and tighter fractionation economics. The Bakken registered an additional decline of roughly 30,000 barrels per day,” they continued.

The analysts went on to state in the report that, “despite weak December volumes, total U.S. liquids production increased by 800,000 barrels per day in 2025, including approximately 350,000 barrels per day of crude and 435,000 barrels per day of NGLs”.

“Growth was only marginally below 2024 levels, when liquids supply expanded by roughly 850,000 barrels per day,” they said.

The analysts noted in the report that this production growth occurred even as oil prices averaged $10 per barrel lower in 2025 “and drilling activity contracted, with the U.S. rig count falling by about 50 rigs over the course of 2025”.

“Efficiency gains were the primary driver, supported by longer laterals, higher completion intensity, and continued optimization of development programs,” the analysts stated.

Looking ahead, the analysts stated in the report that they “remain constructive on 2026 U.S. supply”, adding that they expect total liquids to increase by nearly 600,000 barrels per day, “including roughly 170,000 barrels per day of crude and 407,000 barrels per day of NGLs”.

In its previous count, which was published on February 20, Baker Hughes showed that North America added two rigs week on week. The total U.S. rig count remained unchanged week on week and the total Canada rig count rose by two during the same period, that count showed.

Baker Hughes’ February 13 rig count showed that North America dropped six rigs week on week, its February 6 count revealed that North America added one rig week on week, and its January 30 rig count showed that North America added three rigs week on week.

According to monthly rig count summary figures in Baker Hughes’ latest count, the North America rig count stood at 773 in February 2026, 742 in January 2026, and 718 in December 2025. The latest count outlined that the North America rig count stood at 739 in November 2025, 741 in October 2025, 728 in September 2025, 717 in August 2025, 707 in July 2025, 687 in June 2025, 690 in May 2025, 725 in April 2025, 786 in March 2025, 836 in February 2025, and 791 in January 2025.

Archived Baker Hughes data, which Rigzone was directed to by the Baker Hughes team, outlined that the North America rig count stood at 751 in December 2024, 789 in November 2024, 804 in October, September, and August 2024, 779 in July 2024, 750 in June 2024, 722 in May 2024, 748 in April 2024, 822 in March 2024, 855 in February 2024, and 818 in January 2024.

This data outlined that, in 2023, the North America rig count stood at 784 in December, 816 in November, 814 in October, 819 in September, 836 in August, 858 in July, 832 in June, 817 in May, 861 in April, 948 in March, 1,006 in February, and 998 in January. 

Going further back, this data outlined that, in 2020, the North America rig count stood at 432 in December, 405 in November, 361 in October, 316 in September, 303 in August, 288 in July, 292 in June, 371 in May, 598 in April, 904 in March, 1,039 in February, and 996 in January. 

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