North America Drops Rigs For 1st Time Since August

North America dropped 16 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on October 31.

The total U.S. rig count decreased by four week on week and the total Canada rig count dropped by 12 during the same period, taking the total North America rig count down to 733, comprising 546 rigs from the U.S. and 187 rigs from Canada, the count outlined.

Of the total U.S. rig count of 546, 525 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, 125 gas rigs, and seven miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 478 horizontal rigs, 57 directional rigs, and 11 vertical rigs.

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

A major state variances subcategory included in the rig count showed that, week on week, Texas, Wyoming, and Colorado each dropped one rig and Louisiana, New Mexico, and North Dakota each added one rig. A major state variances subcategory included in the rig count showed that, week on week, the DJ-Niobrara and Haynesville basins each dropped one rig and the Barnett and Permian basins each added one rig.

Canada’s total rig count of 187 is made up of 127 oil rigs and 60 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil rig count dropped by 11 and its gas rig count decreased by one, the count revealed.

The total North America rig count is down 65 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 39 rigs and Canada has cut 26 rigs, year on year. The U.S. has dropped 65 oil rigs and added 23 gas rigs and three miscellaneous rigs, while Canada has dropped 19 oil rigs and seven gas rigs, year on year, the count outlined.

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

“Oil focused rigs decreased by six to 414, after increasing by two rigs the previous week. Meanwhile, natural gas focused rigs rose by four to 121, following an unchanged count last week,” the analysts said in the note.

“The rig count in the five major tight oil basins – we use the EIA [U.S. Energy Information Administration] basin definition – decreased by two to 397 rigs, while the rig count in the two major tight gas basins decreased by one to 81 rigs. Miscellaneous rigs also decreased by two to seven rigs,” they added.

The analysts highlighted in the note that, according to the latest EIA data, U.S. crude and condensate production reached a new record of 13.794 million barrels per day in August, “rising 383,000 barrels per day year on year and 86,000 barrels per day month on month”.

“Including NGLs, production surged by 956,000 barrels per day year over year,” the analysts said in the note.

A data page on the EIA website displaying monthly U.S. field production of crude oil, which was last updated on October 31 and included data from January 1920 to August 2025, showed that monthly U.S. field production of crude oil averaged 13.794 million barrels per day in August. That is the highest figure in the data set, with the second highest coming in July, at 13.708 million barrels per day.

“We had expected production to average 13.733 million barrels per day, with a similar monthly increase, but the EIA revised June and July data up by about 60,000 barrels per day, leaving our forecast directionally consistent but slightly lower in absolute terms,” the J.P. Morgan analysts said in the research note.

“What continues to stand out is the Permian Basin, where output rose by nearly 400,000 barrels per day year on year in August, though month-on-month growth has started to slow,” they added.

“The Gulf of America remains another key driver, posting 139,000 barrels per day year on year growth, while Appalachia also showed steady gains of 55,000 barrels per day year on year. Other producing regions were either flat or slightly negative,” they continued.

The analysts went on to state in the note that, following these upward revisions, official data now show that U.S. crude production increased by 322,000 barrels per day year on year in January-August.

“Based on our estimates, growth in September likely accelerated to around 600,000 barrels per day year on year, which would lift the year to date gain to 358,000 barrels per day year on year – achieved at an average WTI price of $66.7 per barrel, compared with 331,000 barrels per day year on year at $77.5 per barrel for the same period of 2024,” they said.

“In other words, output growth has strengthened even as prices fell by roughly $10 per barrel,” they highlighted.

The J.P. Morgan analysts went on to state in the report that they expect production to edge higher in September, “followed by a modest decline starting in October, reflecting the recent downturn in drilling activity”.

“On an annual basis, growth will remain substantial, but the August level of 13.8 million barrels per day likely marks the peak for 2025, with little upside beyond this level given the rig contraction,” they said.

“Nevertheless, we have revised our 2025 U.S. production growth forecast up to 330,000 barrels per day (from 280,000 barrels per day), driven by continued resilience in the Permian Basin and elevated volumes from the Gulf of America,” they added.

“For 2026, our outlook remains largely unchanged, with crude and condensate growth of around 110,000 barrels per day, primarily from the same two regions,” they J.P. Morgan analysts continued.

In its previous rig count, which was released on October 24, Baker Hughes revealed that North America added three rigs week on week. The total U.S. rig count increased by two week on week and the total Canada rig count increased by one during the same period, that count showed.

Baker Hughes’ 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