North America Rig Count Stays Flat

The total North America rig count remained unchanged week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on June 20.

The U.S. dropped a total of one rig week on week, while Canada added a total of one rig week on week, keeping the total North America rig count at 693, comprising 554 rigs from the U.S. and 139 rigs from Canada, the count outlined.

Of the total U.S. rig count of 554, 538 rigs are categorized as land rigs, 14 are categorized as offshore rigs, and two are categorized as inland water rigs. The total U.S. rig count is made up of 438 oil rigs, 111 gas rigs, and five miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 502 horizontal rigs, 40 directional rigs, and 12 vertical rigs.

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

A major state variances subcategory included in the rig count showed that, week on week, Texas dropped four rigs, Oklahoma dropped two rigs, Utah and North Dakota each dropped one rig, New Mexico and Wyoming each added two rigs, and Colorado and Louisiana each added one rig.

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

Canada’s total rig count of 139 is made up of 93 oil rigs and 46 gas rigs, Baker Hughes pointed out. The country’s oil rig count increased by two week on week and its gas rig count dropped by one during the period, the count revealed.

The total North America rig count is down by 61 rigs compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 34 rigs and Canada has cut 27 rigs, year on year. The U.S. has dropped 47 oil rigs and added 13 gas rigs, while Canada has dropped 16 oil rigs and 11 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 one to 554 this week, according to Baker Hughes”.

“Oil focused rigs decreased by one to 438 rigs, after losing three rigs last week. Natural gas-focused rigs decreased by two to 111 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 – remains unchanged, 424 rigs. The rig count in two major tight gas basins increased by one to 74 rigs. The miscellaneous rig count increased by two to five rigs,” they continued.

“The U.S. oil rig count fell by just one rig this week, signaling a slowdown in the broader downtrend. Losses were concentrated in key areas: Midland (-1), Delaware TX (-3), and Anadarko (-4). This was partially offset by gains in Delaware NM (+3), Eagle Ford (+2), and Niobrara (+3),” they went on to say.

The J.P. Morgan analysts also stated in the research note that, while the latest escalation in the Middle East may provide near-term support to oil prices, they do not expect a sustained turnaround in rig activity.

“Most operators remain cautious, and capital discipline continues to anchor spending decisions,” they said in the note.

“Nevertheless, we have revised our 2026 crude production forecast up by 40,000 barrels per day, driven by the reported surge in hedging activity as shale drillers aim to lock in higher prices,” they added.

“Despite this adjustment, we maintain that the overall supply trend remains constrained by low drilling activity, with productivity gains playing the most significant role in driving production growth in the near term,” they continued.

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

In its previous rig count, which was released on June 13, Baker Hughes revealed that North America added 20 rigs week on week. While the U.S. dropped four rigs week on week, Canada added 24 rigs during the same period, that count outlined.

Baker Hughes’ June 6 rig count showed that North America cut two rigs week on week, its May 30 rig count showed that North America dropped five rigs week on week, its 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