North America Drops More Rigs

(Update) June 10, 2025, 5:14 PM EST: Article updated with DOE statement.

North America cut two rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on June 6.

The U.S. dropped four rigs week on week, while Canada added two rigs during the same timeframe, taking the total North America rig count down to 673, comprising 559 rigs from the U.S. and 114 rigs from Canada, the count outlined.

Of the total U.S. rig count of 559, 544 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 442 oil rigs, 114 gas rigs, and three miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 505 horizontal rigs, 41 directional rigs, and 13 vertical rigs.

Week on week, the U.S. land rig count reduced by four, and its offshore rig count and inland water rig count remained unchanged, the count highlighted. The country’s oil rig count dropped by nine, its gas rig count increased by five, and its miscellaneous rig count remained unchanged, week on week, the count showed. The U.S. horizontal rig count dropped by three week on week, its directional rig count decreased by one week on week, and its vertical rig count remained unchanged during the same timeframe, the count revealed.

A major state variances subcategory included in the rig count showed that, week on week, Oklahoma and Texas each dropped two rigs, Utah dropped one rig, and Louisiana added one rig. A major basin variances subcategory included in Baker Hughes’ rig count showed that, week on week, the Eagle Ford and Permian basins each dropped three rigs, the Granite Wash basin dropped one rig, and the Cana Woodford and Haynesville basins each added two rigs.

Canada’s total rig count of 114 is made up of 69 oil rigs and 45 gas rigs, Baker Hughes pointed out. The country’s oil rig count remained unchanged week on week and its gas rig count increased by two during the period, the count revealed.

The total North America rig count is down by 64 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 35 rigs and Canada has cut 29 rigs, year on year. The U.S. has dropped 50 oil rigs and one miscellaneous rig, and added 16 gas rigs, while Canada has dropped 20 oil rigs and nine gas rigs, year on year, the count outlined.

In a research note sent to Rigzone by the JPM Commodities Research team on Saturday, J.P. Morgan analysts highlighted that “total U.S. oil and gas rigs decreased by four to 559 this week, according to Baker Hughes”.

“Oil focused rigs decreased by nine to 442 rigs, after losing four rigs last week. Natural gas focused rigs increased by five to 114 rigs, following an increase of one rig week over week 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 6 to 427 rigs. The rig count in two major tight gas basins increased by two rigs,” they continued.

In the research note, the J.P. Morgan analysts stated that “the downward trend in U.S. rig activity persists, rapidly becoming the new norm”.

“This week, the total number of oil rigs decreased by nine, with three rigs lost in both the Permian and Eagle Ford. The Anadarko basin also experienced a notable drop of two rigs -the first decline since early April,” they added.

The analysts warned in the note that the pace of rig attrition in the Permian is now surpassing their earlier projections.

“While we initially anticipated rig counts in the basin to reach 275 by the end of June (a drop of seven from May), this level has already been achieved in the first week of the month,” they said in the note.

“Consequently, we have revised down our 2025 Permian crude and condensate output by  8,000 barrels per day. For other tight oil basins, current rig trends remain largely in line with expectations,” they added.

“Permian remains virtually the only major U.S. basin still exhibiting production growth, supported by the lowest breakeven costs. Meanwhile, the Bakken continues to experience significant declines,” they continued.

“The rig count across major gas basins increased by two with the Haynesville adding two rigs while the count in Marcellus/Utica remained unchanged at 35 rigs,” the analysts went on to state in the research note.

Rigzone contacted the U.S. Department of Energy (DOE) and the American Petroleum Institute (API) for comment on J.P. Morgan’s research note.

In response, a DOE spokesperson told Rigzone, “as Secretary [of Energy Chris] Wright has stated, President Trump’s agenda is to lower the cost of oil production in the United States, lower the cost of natural gas production in the United States – that ultimately will lead to lower average prices and at the same profitability for businesses”.

“That’s likely averaged over a long time period. While prices and production levels are going to move up and down in the short term, the Trump administration is focused on changing policies such as permitting reform, removing red tape, and changing the investment climate for businesses in this country – all big wins for the American people and why the President was elected in the first place,” the spokesperson added.

At the time of writing, the API has not responded to Rigzone’s request for comment on J.P. Morgan’s research note. Rigzone also contacted the API for comment on the DOE’s statement. The API has not responded to this request at the time of writing either.

In its previous rig count, which was released on May 30, Baker Hughes showed that North America dropped five rigs week on week. The total U.S. rig count dropped by three and the total Canada rig count dropped by two week on week, that count outlined.

Baker Hughes’ May 23 count showed that North America dropped 17 rigs week on week and the company’s May 16 rig count showed that North America added five rigs week on week.

Baker Hughes’ 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 revealed 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