North America Keeps Adding Rigs

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 three rigs week on week, according to Baker Hughes’ latest rotary rig count, which was released on June 28.

Although the U.S. dropped seven rigs week on week, Canada added 10 rigs during the same timeframe, taking the total North America rig count up to 757, comprising 581 rigs from the U.S. and 176 rigs from Canada, the count outlined.

Of the total U.S. rig count of 581, 560 are categorized as land rigs and 21 are categorized as offshore rigs. The country has 479 oil rigs, 97 gas rigs, and five miscellaneous rigs, according to Baker Hughes, which revealed that the country’s total rig count is made up of 518 horizontal rigs, 45 directional rigs, and 18 vertical rigs.

Week on week, the U.S. dropped seven land rigs, and its gas rig count reduced by one while its oil rig count dropped by six, the count showed. The U.S. cut seven horizontal rigs and one vertical rig week on week, while its directional rig count increased by one during the same timeframe, the count revealed.

Texas dropped five rigs and Oklahoma and New Mexico each cut one rig week on week, the count highlighted.

Canada’s total rig count of 176 is made up of 116 oil rigs, 59 gas rigs, and one miscellaneous rig, the count showed. The country added seven oil rigs, two gas rigs, and one miscellaneous rig week on week, the count outlined.

The total North America rig count is down 84 compared to year ago levels, according to Baker Hughes, which highlighted that the U.S. has driven this decline, cutting 93 rigs during the period while Canada’s count increased by nine. The U.S. has cut 66 oil rigs and 27 gas rigs, while Canada has added seven oil rigs, one gas rig, and one miscellaneous rig, year on year, the rig count revealed.

In a report sent to Rigzone by the JPM Commodities Research team on June 28, J.P. Morgan analysts said, “the rig count in the five major tight oil basins fell by seven rigs, the largest weekly drop in the count since August 2023”.

“While improved drilling and frac efficiencies allow for production growth with lower number of rigs, further sustained reductions in the U.S. oil rig count will likely have a material impact on U.S. crude and condensate production in 2025,” they added.

“Barring additional efficiency outperformance over our updated metrics or an increase in the oil rig count, sustained lower 2H24 drilling activity would likely reduce our 2025 production forecast by 90,000 barrels per day,” they continued.

“As of today, we still see the U.S. contributing 750,000 barrels per day of total liquids supply growth in 2025, or 42 percent of our expected 1.8 million barrel per day year on year increase in non-OPEC+ output,” the analysts went on to state.

In its previous rig count, which was released on June 21, Baker Hughes revealed that North America added four rigs week on week. That count showed that the U.S. dropped two rigs week on week, while Canada added six rigs.

Baker Hughes’ June 14 count showed that North America added 13 rigs week on week, its 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, and its May 3 count also showed that North America dropped six rigs week on week. The company’s 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 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