North America dropped one rig week on week, according to Baker Hughes’ latest rotary rig count, which was released on May 17.
Although the U.S. added one rig week on week, Canada dropped two during the same period, leading to a total North America rig count of 718, comprising 604 rigs from the U.S. and 114 rigs from Canada, the count outlined.
Of the total U.S. rig count of 604, 584 are classified as land rigs and 20 are classified as offshore rigs. The country has 497 oil rigs, 103 gas rigs, and four miscellaneous rigs, the count revealed. The U.S. total rig count is made up of 545 horizontal rigs, 41 directional rigs, and 18 vertical rigs, the count pointed out.
Week on week, the U.S. added one offshore rig and its oil rig count increased by one, the count showed. The country dropped three horizontal rigs but added three vertical rigs and one directional rig, the count revealed. Louisiana, Oklahoma, and Texas each added one rig week on week, while New Mexico dropped two rigs during the same period, the count outlined.
Canada’s total rig count of 114 is made up of 57 oil rigs and 57 gas rigs, Baker Hughes showed. The country added one gas rig and dropped three oil rigs week on week, the company highlighted in the count.
The total North America rig count is down 87 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 116 rigs during the period while Canada’s count increased by 29. The U.S. has cut 78 oil rigs and 38 gas rigs, while Canada has added 11 gas rigs and 18 oil rigs, year on year, the rig count revealed.
“This week, the rig count in the five major tight oil basins fell by one as the Anadarko basin gained two, the Permian lost two and the Eagle Ford lost one,” analysts at J.P. Morgan stated in a research note sent to Rigzone late Sunday.
“Following a loss of 10 rigs over the past three weeks, the decline in the rig counts has slowed. While the count currently sits 16 rigs below our projections for the month of April, we believe that drilling efficiencies observed in the first quarter are driving the discrepancy,” they added.
“As we wait for reported drilling data to confirm this trend, we are closely evaluating if the current oil rig count becomes a new balancing point. We expect May/June drilling rig averages to reflect what rig levels are required for public operators to successfully complete their 2024 drilling programs,” they went on to state.
In its previous rig count, which was released on May 10, Baker Hughes showed that North America dropped six rigs week on week. The U.S. cut two rigs week on week and Canada cut four rigs, that count outlined.
Baker Hughes’ May 3 count showed that North America dropped six rigs week on week, its April 26 count showed that North America dropped 15 rigs week on week, and its April 19 count showed that North America dropped 12 rigs week on week.
The company’s April 12 count revealed that North America added two rigs week on week, and its April 5 count showed that North America cut 16 rigs week on week.
Baker Hughes’ March 28 count revealed that North America dropped 21 rigs week on week, its March 22 count showed that the region cut 43 rigs week on week, its March 15 count showed that the region cut 11 rigs week on week, and its March 8 rig count showed that North America dropped 13 rigs week on week.
Baker Hughes’ March 1 rig count revealed that North America added three rigs week on week, its February 23 rig count showed that North America added two rigs week on week, and its February 16 count showed that North America’s rig count remained unchanged week on week.
The company’s February 9 rig count revealed that North America increased its rig count by four rigs week on week, its February 2 count showed that North America’s rig count stayed flat week on week, and its January 26 rig count showed that North America increased its rig count by eight rigs week on week.
Baker Hughes’ January 19 count revealed that North America increased its rig count by 11 rigs week on week, its January 12 rig count showed that North America increased its rig count by 86 rigs week on week, and its January 5 rig count, which marked the company’s first rotary rig count of 2024, showed that North America added 38 rigs week on week.
The company’s final rotary rig count of 2023 showed a notable week on week and year on year drop for North America. The region’s rig count decreased by 58 week on week and by 155 year on year, according to that count, which was released on December 29.
Baker Hughes, which has issued the rotary rig counts to the petroleum industry since 1944, describes the figures as an important business barometer for the drilling industry and its suppliers. The company obtains its working rig location information in part from Enverus.
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