North America Breaks Rig Loss Streak

North America has seen an increase in its weekly rig count, breaking a string of consecutive losses, according to the latest rotary rig count published by Baker Hughes on September 15. The region added a total of 17 rigs, with nine in the U.S. and eight in Canada. This brings North America’s total rig count to 831, with 641 rigs in the U.S. and 190 in Canada.

Among the U.S. rig count, there are 619 land rigs, 19 offshore rigs, and three inland water rigs. Of the total U.S. count, 515 rigs are categorized as oil rigs, 121 as gas rigs, and five as miscellaneous rigs.

The U.S. saw an increase of nine land rigs, while its oil rig count increased by two and its gas rig count increased by eight during the same period. Colorado, Utah, and Wyoming each added one rig, Texas added seven, and New Mexico lost one.

In Canada, the total rig count reached 190, consisting of 119 oil rigs and 71 gas rigs. The country’s oil rig count increased by six and its gas rig count rose by two.

Compared to the previous year, North America’s rig count has decreased by 143, with the U.S. driving most of the decline by cutting 122 rigs and Canada dropping 21 rigs. The U.S. has reduced 84 oil rigs and 41 gas rigs, while adding three miscellaneous rigs. Canada dropped 27 oil rigs but added six gas rigs.

This data contrasts with the previous rig count released on September 8, which showed a decrease of four rigs in North America compared to the previous week, with 632 rigs in the U.S. and 182 in Canada. The U.S. had 513 oil rigs, 113 gas rigs, and six miscellaneous rigs.

Standard Chartered analysts noted that the U.S. oil rig count increased by one, marking the first increase in 13 weeks. However, they also mentioned that the overall decline for the year is 108 rigs, with a decline of 78 rigs compared to the previous year. Most of the decrease occurred in the Delaware Basin of New Mexico and west Texas, where activity fell by three rigs to 176 rigs. Other areas, such as the Permian Basin and the Bakken region, experienced mixed changes in rig counts.

Baker Hughes’ rig counts have been seen as an important business indicator for the drilling industry and its suppliers since 1944. The company obtains rig location information from Enverus, which tracks rig counts using GPS units.

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