North America Deepens Rig Losses

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

North America dropped six rigs week on week, according to Baker Hughes’ latest rotary rig count, which was released on May 3.

The U.S. dropped eight rigs week on week, while Canada added two rigs, taking the total North America rig count down to 725, comprising 605 rigs from the U.S. and 120 rigs from Canada, Baker Hughes’ latest rig count outlined.

Of the total U.S. rig count of 605, 587 are categorized as land rigs and 18 are categorized as offshore rigs. This total rig count is made up of 499 oil rigs, 102 gas rigs, and four miscellaneous rigs, Baker Hughes pointed out. The country has 552 horizontal rigs, 40 directional rigs, and 13 vertical rigs, the company revealed.

Week on week, the U.S. dropped nine land rigs and added one offshore rig, and cut seven oil rigs and three gas rigs, while adding two miscellaneous rigs, the count highlighted. The country dropped seven directional rigs and one vertical rig during the same timeframe, Baker Hughes showed in the count.

Texas and Alaska each dropped five rigs week on week, and Utah dropped one, while Louisiana added two and New Mexico added one rig week on week, Baker Hughes’ count outlined.

Canada’s total rig count of 120 comprises 60 oil rigs and 60 gas rigs, the count revealed. The country dropped two gas rigs week on week and added four oil rigs, Baker Hughes showed.

The total North America rig count is down 116 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 143 rigs during the period while Canada’s count increased by 27. The U.S. has cut 89 oil rigs, 55 gas rigs, and added one miscellaneous rig, while Canada has added one gas rig and 26 oil rigs, year on year, the rig count revealed.

In its previous rig count, which was released on April 26, Baker Hughes showed that North America dropped 15 rigs week on week. Canada cut nine rigs week on week while the U.S. dropped six rigs, that count outlined.

“The U.S. oil rig count fell by five week on week to 506, according to the latest Baker-Hughes survey,” analysts at Standard Chartered said in a report sent to Rigzone on April 30, referring to Baker Hughes’ April 26 rig count.

“The year on year decline stands at 85 rigs (14.4 percent). The largest change was offshore Louisiana where oil activity fell by three week on week to 13 rigs,” they added.

“The horizontal oil rig count (a proxy for shale oil activity) is unchanged year to date after falling by two week on week to 457. The Bakken region of North Dakota and Montana has been particularly undynamic; the rig count has been 34 for the past 16 weeks and in a 32-34 range for 33 weeks,” they continued.

“The U.S. gas count declined by a single rig to a 28-month low of 105; the year on year fall of 56 rigs (34.8 percent) has been concentrated in the Haynesville region where activity has fallen 34 year on year to a 44-month low of 35 rigs,” the analysts went on to state.

Baker Hughes’ April 19 count showed that North America dropped 12 rigs week on week and its April 12 count showed that North America added two rigs week on week.

The company’s April 5 count showed that North America cut 16 rigs week on week, its 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.

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