North America Adds More Rigs

by Andreas Exarheas
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas

North America added nine rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on January 17.

Although the U.S. dropped four rigs week on week, Canada added 13 during the same period, taking the total North America rig count up to 809, comprising 580 rigs from the U.S. and 229 rigs from Canada, the count outlined.

Of the total U.S. rig count of 580, 564 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 478 oil rigs, 98 gas rigs, and four miscellaneous rigs, according to the count, which revealed that the U.S. total comprises 515 horizontal rigs, 52 directional rigs, and 13 vertical rigs.

Week on week, the U.S. offshore and inland water rig counts remained unchanged, but the country’s land rig count dropped by four, the count showed. The country’s gas rig count dropped by two, its oil rig count dropped by the same number, and its miscellaneous rig count remained unchanged, week on week, the count revealed. The U.S. horizontal rig count dropped by seven, while its directional rig count increased by three and its vertical rig count remained unchanged, week on week, the count highlighted.

A major state variances subcategory included in the rig count showed that North Dakota dropped four rigs, and Texas and Louisiana each dropped one rig, week on week. California and Wyoming each added one rig during the same period, the count outlined.

A major basin variances subcategory included in Baker Hughes’ rig count showed that the Williston basin dropped four rigs, the Cana Woodford and Haynesville basins each dropped two rigs, and the Arkoma Woodford and Mississippian basins each dropped one rig, week on week. The Eagle Ford and Granite Wash basins each added one rig week on week, the count revealed.

Canada’s total rig count of 229 is made up of 156 oil rigs and 73 gas rigs, Baker Hughes pointed out. The country’s oil rig count increased by 12 week on week and its gas rig count rose by one week on week, the count showed.

The total North America rig count is down 34 compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 40 rigs and Canada has added six rigs year on year. The U.S. has dropped 19 oil rigs and 22 gas rigs, and added one miscellaneous rig, while Canada has added 16 oil rigs and cut 10 gas rigs, year on year, the count revealed.

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 fell by four to 580 this week, according to Baker Hughes”.

“Oil focused operators fell by two to 478 rigs, after last week’s loss of two. Natural gas-focused rigs fell by two to 98 rigs, adding to last week’s loss of three,” they added.

“This week, the rig count in major tight oil basins fell by four, all from the Bakken, while other regions remained stable. Although significant in comparison to the total number of rigs running in the region, this drop is likely temporary due to colder January weather, now nearly 1.9 standard deviations below the 10-year average,” the analysts continued in that note.

“The cold likely delays rig movements or leaves them idle. While oil production hasn’t been heavily impacted yet, freezing temperatures typically cut output by about 50,000 barrels per day, with severe snowstorms potentially increasing outages to over 150,000 barrels per day on a monthly average,” they went on to state.  

In its previous rig count, which was published on January 10, Baker Hughes outlined that North America added 117 rigs week on week. The total U.S. rig count dropped by five week on week while Canada’s total rig count increased by 122 during the same timeframe, that count showed.

Baker Hughes’ January 3 rig count outlined that North America dropped one rig week on week, its December 27 rig count showed that North America dropped 71 rigs week on week, its December 20 rig count revealed that North America lost 25 rigs week on week, its December 13 rig count revealed that North America lost three rigs week on week, and its December 6 rig count revealed that North America lost four rigs week on week. The company’s November 27 count showed that North America’s total rig count increased by three week on week.

Baker Hughes, which has issued 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 notes that working rig location information is provided in part by Enverus.

by Andreas Exarheas
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas