North America Keeps Rig Loss Streak Going
by Andreas Exarheas
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
North America cut 12 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on April 4.
The total U.S. rig count decreased by two week on week and the total Canada rig count dropped by 10 during the same period, taking the total North America rig count down to 743, comprising 590 rigs from the U.S. and 153 from Canada, the count outlined.
Of the total U.S. rig count of 590, 573 rigs are categorized as land rigs, 14 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 489 oil rigs, 96 gas rigs, and five miscellaneous rigs, according to the count, which revealed that the U.S. total comprises 529 horizontal rigs, 48 directional rigs, and 13 vertical rigs.
Week on week, the U.S. inland water and offshore rig counts remained unchanged, and the country’s land rig count dropped by two, the count highlighted. The U.S. gas rig count dropped by seven, its oil rig count increased by five, and its miscellaneous rig count remained unchanged, week on week, the count showed. Baker Hughes’ count revealed that the U.S. horizontal and vertical rig counts remained unchanged week on week, while the country’s directional rig count dropped by two during the period.
A major state variances subcategory included in the rig count showed that, week on week, Texas dropped three rigs and Pennsylvania added one rig. A major basin variances subcategory included in Baker Hughes’ rig count showed that the Marcellus basin added two rigs and the Granite Wash basin added one rig week on week. The Permian cut three rigs, and the Utica and Cana Woodford basins each cut one rig during the same timeframe, the count outlined.
Canada’s total rig count of 153 is made up of 99 oil rigs and 54 gas rigs, Baker Hughes pointed out. The country’s oil rig count dropped by nine, its gas rig count remained unchanged, and its miscellaneous rig count dropped by one, week on week, the count revealed.
The total North America rig count is down 13 compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 30 rigs and Canada has added 17 rigs, year on year. The U.S. has dropped 19 oil rigs and 14 gas rigs, and added three miscellaneous rigs, while Canada has dropped 17 gas rigs, and added 34 oil rigs, year on year, the count outlined.
In a research note sent to Rigzone on Friday by the JPM Commodities Research team, analysts at J.P. Morgan noted that “total U.S. oil and gas rigs declined by two to 592 this week, according to Baker Hughes”.
“Oil focused rigs increased by five to 489 rigs, after losing two rigs last week. Natural gas-focused rigs decreased by seven to 96 rigs, after adding one rig last week,” they added.
“The rig count in the five major tight oil basins – we use the EIA basin definition – declined by three to 457 rigs … with all losses occurring in the Permian basin, while the rig count in all other regions remained unchanged,” they continued.
“This follows the Permian losing three rigs last week and 10 rigs over the last four weeks. Overall, the rig count in the Permian basin is now running 13 rigs below our forecast, which we broadly attribute to weaker WTI prices and rising uncertainties around global oil demand,” they noted.
“If the reduced activity in the Permian basin is sustained throughout remainder of the year, we estimate a ~45,000 barrel per day negative impact on U.S. liquids production in 2025 vs our forecast,” the J.P. Morgan analysts went on to state in the research note.
In its previous rig count, which was released on March 28, Baker Hughes revealed that North America cut 18 rigs week on week. The total U.S. rig count decreased by one week on week and the total Canada rig count decreased by 17 during the same period, that count outlined.
Baker Hughes’ March 21 rig count revealed that North America cut 18 rigs week on week, its March 14 count revealed that North America dropped 35 rigs week on week, and its March 7 rig count revealed North America dropped 15 rigs week on week.
In its February 28 rig count, Baker Hughes showed that North America added five rigs week on week. Its February 21 count revealed that North America added three rigs week on week, its February 14 rig count showed that North America dropped two rigs week on week, and its January 31 rig count showed that North America added 19 rigs week on week.
The company’s January 24 rig count revealed that North America added 12 rigs week on week, its January 17 count showed that North America added nine rigs week on week, and its January 10 rig count outlined that North America added 117 rigs week on week.
Baker Hughes’ January 3 rig count revealed that North America dropped one rig week on week and its December 27 rig count showed that North America dropped 71 rigs week on week.
Baker Hughes, which has issued rotary rig counts 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