North America Ends Rig Loss Streak

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

North America added two rigs week on week, according to Baker Hughes’ latest rotary rig count, which was published on May 24.

Although the U.S. lost four rigs week on week, Canada added six during the same period, leading to a total North America rig count of 720, comprising 600 rigs from the U.S. and 120 rigs from Canada, the count outlined.

Of the total U.S. rig count of 600, 579 are classified as land rigs and 21 are classified as offshore rigs. The total U.S. rig count comprises 497 oil rigs, 99 gas rigs, and four miscellaneous rigs, the count showed. Horizontal rigs made up 537 of the total U.S. rig count, directional rigs made up 43, and vertical rigs made up 20, Baker Hughes revealed.

Week on week, the U.S. added one offshore rig and dropped five land rigs, Baker Hughes’ count outlined. The country cut four gas rigs and eight horizontal rigs, and added two directional and two vertical rigs, week on week, the count showed.

Canada’s total rig count of 120 is made up of 64 oil rigs and 56 gas rigs, Baker Hughes highlighted. The country cut one gas rig and added seven oil rigs week on week, the count pointed out.

The total North America rig count is down 78 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 111 rigs during the period while Canada’s count increased by 33. The U.S. has cut 73 oil rigs and 38 gas rigs, while Canada has added 11 gas rigs and 22 oil rigs, year on year, the rig count revealed.

“This week, the rig count in the five major tight oil basins fell by two, setting the total count one rig below where 2023 ended,” analysts at J.P. Morgan said in a research note sent to Rigzone late Friday.

“Rig count peaked in mid-April at 478, or 12 rigs above the level at the start of the year, before shedding all of the gains over the last five weeks. The trajectory of the drilling activity so far this year tracks quite closely to the WTI price, likely indicating that a majority of the movement in the rigs is tied to more price-sensitive private drillers,” they added.

“While we expected private producers to make a smaller contribution to this year’s production growth (~100,000 barrels per day) relative to 2023 (~400,000 barrels per day), we note that slower drilling by private operators likely reduces the chance of overshooting our current estimate of a total 400,000 barrels per day growth from U.S. crude and condensate production this year,” the analysts went on to state.

In its previous rig count, which was released on May 17, Baker Hughes showed that North America dropped one rig week on week. Although the U.S. added one rig week on week, Canada dropped two during the same period, that count showed.

Baker Hughes’s May 10 count showed that North America dropped six rigs week on week, its May 3 count also 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.

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