North America Adds Rigs for 4 Straight Weeks

North America added eight rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on July 25.

Although the U.S. dropped two rigs week on week, Canada added 10 rigs during the same period, taking the total North America rig count up to 724, comprising 542 rigs from the U.S. and 182 from Canada, the count outlined.

Of the total U.S. rig count of 542, 526 rigs are categorized as land rigs, 13 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 415 oil rigs, 122 gas rigs, and five miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 483 horizontal rigs, 47 directional rigs, and 12 vertical rigs.

Week on week, the U.S. land rig count decreased by three, while the country’s inland water rig count increased by one and its offshore rig count remained unchanged, the count highlighted. The country’s gas rig count increased by five, its oil rig count dropped by seven, and its miscellaneous rig count remained the same, week on week, the count showed. The U.S. directional rig count rose by three, its vertical rig count dropped by three, and its horizontal 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, Texas dropped four rigs, Wyoming dropped two rigs, and New Mexico and Alaska each dropped one rig. Colorado was shown to have added three rigs, Louisiana was shown to have added two rigs, and Pennsylvania was shown to have added one rig, week on week.

A major basin variances subcategory included in Baker Hughes’ rig count showed that, week on week, the Permian basin dropped three rigs and the Eagle Ford basin dropped two rigs. The Marcellus basin and the DJ-Niobrara basin were each shown to have added one rig week on week.

Canada’s total rig count of 182 is made up of 128 oil rigs and 54 gas rigs, Baker Hughes pointed out. The country’s oil rig count increased by eight week on week and its gas rig count rose by two during the period, the count revealed.

The total North America rig count is down by 76 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 47 rigs and Canada has cut 29 rigs, year on year. The U.S. has dropped 67 oil rigs and one miscellaneous rig, and added 21 gas rigs, while Canada has dropped 16 oil rigs and 13 gas rigs, year on year, the count outlined.

In a research note sent to Rigzone by the JPM Commodities Research team on Friday, J.P. Morgan analysts highlighted that “total U.S. oil and gas rigs decreased by two to 542 this week, according to Baker Hughes”.

“Oil focused rigs saw a reduction of seven, bringing the total down to 415, following a loss of two rigs the previous week. Meanwhile, natural gas focused rigs continued their upward trend, with the addition of five rigs, reaching a total of 122, after a week over week increase of nine rigs 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 four to 403 rigs, while the rig count in the two major tight gas basins increased by one to 78 rigs. The miscellaneous rig count remains unchanged,” they continued.

“Drilling activity weakened further this week, with a loss of seven oil rigs, including three in the Permian and five in Eagle Ford. However, the Eagle Ford added three new gas rigs, possibly reflecting a reclassification of the rigs from oil to gas. Niobrara saw a decrease of one oil rig but added two gas rigs, while the Marcellus added one new gas rig,” the analysts went on to state.

“Overall, the total gas rig count increased by five, nearly offsetting the decline in oil rigs. Additionally, Mesa County, Colorado saw a net addition of one gas rig in the ‘Other’ category, marking the first such classification since 2019,” they said in the research note.

In its previous rig count, which was released on July 18, Baker Hughes revealed that North America added 17 rigs week on week. The U.S. added seven rigs and Canada added 10 rigs week on week, that count outlined. Baker Hughes’ 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