North America Enters Rig Loss Streak

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

North America cut three rigs week on week, according to Baker Hughes’ latest rotary rig count, which was published on October 18.

The U.S. dropped one rig and Canada dropped two rigs week on week, taking the total North America rig count down to 802, comprising 585 rigs from the U.S. and 217 rigs from Canada, the count outlined.

Of the total U.S. rig count of 585, 566 are classified as land rigs, 18 are categorized as offshore rigs, and one is classified as an inland water rig. The total U.S. rig count is made up of 482 oil rigs, 99 gas rigs, and four miscellaneous rigs, according to Baker Hughes, which showed that this total comprised 515 horizontal rigs, 53 directional rigs, and 17 vertical rigs.

Week on week, the U.S. cut one land rig, while its inland water and offshore rig count remained unchanged, the count revealed. The country’s oil rig count increased by one, its gas rig count dropped by two, and its miscellaneous rig count stayed the same during the period, the count highlighted. The directional rig count in the U.S. decreased by two week on week, the horizontal rig count decreased by four, and the vertical rig count increased by five, the count showed.

A subcategory of major state variances in the Baker Hughes count showed that Texas dropped two rigs week on week, while Oklahoma and Colorado each added one rig during the same timeframe.  

Canada’s total rig count of 217 is made up of 153 oil rigs and 64 gas rigs, Baker Hughes’ count revealed. The country dropped one gas rig and one oil rig week on week, the count showed.

The total North America rig count is down 20 compared to year ago levels, according to Baker Hughes, which outlined that the U.S. has driven this decline, cutting 39 rigs during the period while Canada’s count increased by 19. The U.S. has cut 20 oil rigs and 19 gas rigs, while Canada has added 32 oil rigs, and cut 13 gas rigs, year on year, the count revealed.

In a research note sent to Rigzone on Friday by the JPM Commodities Research team, J.P. Morgan analysts highlighted that “total U.S. oil and gas rigs fell by one to 585 this week, according to Baker Hughes”.

“Oil focused operators rose by one to 482 rigs, following last week’s gain of two. Natural gas- focused rigs fell by two to 99 rigs, as the active count slips back below the 100 rig mark,” they added.

“The rig count in the five major tight oil basins increased by two. The Anadarko and Niobrara basins each gained one rig while all other regions remained unchanged. Over the last three weeks, the count in the Permian has held steady at 304 rigs, just one above its 2024 low of 303 rigs,” they continued.

“As the Permian Basin continues to drive overall U.S. shale growth, we anticipate third quarter 2024 earnings and fourth quarter guidance from public U.S. producers in the coming weeks. Unless there are significant shifts in forward guidance sentiment, we maintain our expectation that major tight oil producers will add 11 more rigs by year-end, primarily driven by additions in the Permian,” they went on to state.

In its previous rig count, which was published on October 11, Baker Hughes also revealed that North America dropped three rigs week on week. The U.S. added one rig and Canada dropped four rigs week on week, that count outlined.

Baker Hughes’ October 4 count showed that North America added three rigs week on week and its September 27 count revealed that North America added six rigs week on week.

The company’s September 20 rig count showed that North America dropped nine rigs week on week, its September 13 rig count showed that North America added six rigs week on week, its September 6 rig count revealed that North America dropped one rig week on week, and its August 30 rig count also showed that North America dropped one rig week on week.

Baker Hughes’ August 23 count revealed that North America added one rig week on week, its August 16 count revealed that North America dropped two rigs week on week, and its August 9 count showed that North America’s rig count stayed flat week on week.

Baker Hughes’ August 2 rig count showed that North America added five rigs week on week, its July 26 count showed that North America added 17 rigs week on week, its July 19 count revealed North America added 10 rigs week on week, and its July 12 count showed that North America added 13 rigs week on week.

The company’s July 5 count revealed that North America added three rigs week on week, its June 28 count also showed that North America added three rigs week on week, its June 21 rig count revealed that North America added four rigs week on week, and its June 14 count showed that North America added 13 rigs week on week.

Baker Hughes’ June 7 count revealed that North America added nine rigs week on week, its May 31 count showed that North America added eight rigs week on week, and its May 24 rig count highlighted that North America added two rigs week on week.

The company’s May 17 count revealed that North America dropped one rig week on week, its 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 cut 12 rigs week on week.

Baker Hughes’ 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.

The company’s 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 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