North America Loses Rigs for 10 Straight Weeks

North America cut 12 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on May 9.

The U.S. and Canada each dropped a total of six rigs week on week, taking the total North America rig count down to 692, comprising 578 rigs from the U.S. and 114 from Canada, the count outlined.

Of the total U.S. rig count of 578, 564 rigs are categorized as land rigs, 11 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 474 oil rigs, 101 gas rigs, and three miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 522 horizontal rigs, 41 directional rigs, and 15 vertical rigs.

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

A major state variances subcategory included in the rig count showed that, week on week, New Mexico dropped four rigs, Louisiana dropped three rigs, and Wyoming dropped two rigs. Texas added two rigs and Utah added one rig during the period, the count revealed.  

A major basin variances subcategory included in Baker Hughes’ rig count showed that, week on week, the Permian basin dropped two rigs, the DJ-Niobrara basin dropped one rig, and the Cana Woodford and Granite Wash basins each added three rigs.

Canada’s total rig count of 114 is made up of 68 oil rigs and 46 gas rigs, Baker Hughes pointed out. The country’s oil rig count dropped by six week on week and its gas rig count remained unchanged during the period, the count revealed.

The total North America rig count is down 27 compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 25 rigs and Canada has cut two rigs, year on year. The U.S. has dropped 22 oil rigs, two gas rigs, and one miscellaneous rig, while Canada has dropped 10 gas rigs, and added eight oil rigs, year on year, the count outlined.

In a research note sent to Rigzone on Friday by the JPM Commodities Research team, analysts at J.P. Morgan noted that, “total U.S. oil and gas rigs decreased by six to 578 this week, according to Baker Hughes”.

“Oil focused rigs decreased by five to 474 rigs, after losing four rigs last week. Natural gas focused rigs remained flat at 101 rigs, after adding two rigs last week,” the analysts added.

“The rig count in the five major tight oil basins – we use the EIA [Energy Information Administration] basin definition – decreased by three to 447 rigs. The rig count in two major tight gas basins remained unchanged at 70 rigs,” the analysts continued.

Looking at the rig count “across major tight oil basins” in the research note, the J.P. Morgan analysts pointed out that the “Permian los[t]… two rigs and Niobrara los[t]… one rig, while counts in other regions remained unchanged”.

“The decline in rig count follows the continued cautious stance by various U.S. oil and gas producers during the ongoing earnings season,” the J.P. Morgan analysts stated in the research note.

“We would expect an increase in natural gas activity from current levels as Calendar-2026 prices maintain their strength at or above ~$4.4 per million British thermal units (MMBtu) currently,” they added.

Rigzone has contacted the American Petroleum Institute (API) for comment on J.P. Morgan’s research note. At the time of writing, API has not responded to Rigzone.

In its previous rig count, which was released on May 2, Baker Hughes revealed that North America dropped 11 rigs week on week. The U.S. dropped a total of three rigs week on week and Canada dropped a total of eight rigs during the same period, that count showed.

Baker Hughes’ April 25 count revealed that North America dropped four rigs week on week, its April 17 count revealed that North America dropped two rigs week on week, and 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