North America Loses Rigs for 7 Straight Weeks

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

North America dropped two rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on April 17.

Although the total U.S. rig count increased by two week on week, the total Canada rig count decreased by four during the same period, taking the total North America rig count down to 719, comprising 585 rigs from the U.S. and 134 from Canada, the count outlined.

Of the total U.S. rig count of 585, 569 rigs are categorized as land rigs, 13 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 481 oil rigs, 98 gas rigs, and six miscellaneous rigs, according to the count, which revealed that the U.S. total comprises 527 horizontal rigs, 44 directional rigs, and 14 vertical rigs.

Week on week, the U.S. land rig count increased by two, and its offshore rig count and inland water rig count remained unchanged, the count highlighted. The U.S. oil rig count increased by one week on week, as did its gas rig count, and its miscellaneous rig count remained unchanged during the period, the count showed. Baker Hughes’ count revealed that the U.S. horizontal rig count increased by four, its directional rig count dropped by two, and its vertical rig count remained the same, week on week.

A major state variances subcategory included in the rig count showed that, week on week, Ohio and Pennsylvania each gained two rigs, and West Virginia and California each dropped one rig. A major basin variances subcategory included in Baker Hughes’ rig count showed that the Utica basin added two rigs, and the Marcellus and Cana Woodford basins each added one rig, week on week.

Canada’s total rig count of 134 is made up of 87 oil rigs and 47 gas rigs, Baker Hughes pointed out. The country’s oil rig count dropped by four and its gas rig count remained unchanged, week on week, the count revealed.

The total North America rig count is down 27 compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 34 rigs and Canada has added seven rigs, year on year. The U.S. has dropped 30 oil rigs and eight gas rigs, and added four miscellaneous rigs, while Canada has dropped 20 gas rigs, and added 27 oil rigs, year on year, the count outlined.

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

“Oil focused rigs increased by one to 481 rigs, after losing nine rigs last week. Natural gas-focused rigs increased by one to 98 rigs, after adding one rig last week. The rig count in the five major tight oil basins – we use the EIA [U.S. Energy Information Administration] basin definition – increased by one to 452 rigs,” the analysts added in the note.

“The Eagle Ford basin add[ed]… one rig, while the rig count in all other regions remained unchanged. This follows Eagle Ford losing one rig last week; however, the rig count in the basin has remained broadly stable at 52-53 rigs over the past 11 weeks,” the analysts continued.

“The rig count across major gas basins increased by three, with Marcellus/Utica adding one rig, while the rig count in Haynesville remained unchanged. This follows Marcellus/Utica adding one rig last week after seven weeks of unchanged rig count. The Haynesville rig count was flat last week and has increased by three over a four-week period,” they went on to state.

In its previous rig count, which was released on April 11, Baker Hughes revealed that North America cut 22 rigs week on week. The total U.S. rig count decreased by seven week on week and the total Canada rig count decreased by 15 during the same period, that count outlined.

Baker Hughes’ April 4 rig count showed that North America cut 12 rigs week on week, its March 28 count revealed that North America cut 18 rigs week on week, and its March 21 rig count also revealed that North America cut 18 rigs week on week. The company’s March 14 count showed that North America dropped 35 rigs week on week and its March 7 rig count revealed North America cut 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 Roseand Oil & Gas