North America Rig Losses Pile Up - Rigzone News
North America Rig Losses Pile Up | Rigzone
North America Rig Losses Pile Up
North America has dropped more rigs, according to Baker Hughes’ latest rotary rig count, which was published on October 6.
The region cut 15 rigs week on week, with four of those coming from the U.S. and 11 from Canada, the count showed. North America’s total rig count is now 799, comprising 619 rigs from the U.S. and 180 rigs from Canada, the count highlighted.
Of the total U.S. rig count of 619, 596 are categorized as land rigs, 20 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count comprises 497 oil rigs, 118 gas rigs, and four miscellaneous rigs, Baker Hughes revealed.
Week on week, the U.S. had four fewer land rigs and dropped five oil rigs and one miscellaneous rig, while adding two gas rigs, the count showed. Texas dropped seven rigs during the period, North Dakota and Wyoming each dropped one rig, New Mexico added four rigs, and Oklahoma added two rigs, the count outlined.
Canada’s total rig count of 180 comprises 108 oil rigs and 72 gas rigs, the count pointed out. The country was shown to have dropped seven oil rigs and four gas rigs week on week.
Baker Hughes’ latest rig count outlined that North America is down 178 rigs on year ago figures and showed that the U.S. has driven this decline, cutting 143 rigs during the period while Canada dropped 35 rigs. The U.S. has cut 105 oil rigs and 40 gas rigs, and added two miscellaneous rigs, year on year, while Canada has dropped 40 oil rigs and added five gas rigs year on year, the rig count revealed.
In its previous rig count, which was released on September 29, Baker Hughes revealed that North America dropped six rigs week on week. In that rig count, Baker Hughes outlined that the U.S. cut seven rigs while Canada added one rig during the timeframe.
“Prices above $90 per barrel have yet to arrest the decline in U.S. oil drilling activity,” analysts at Standard Chartered said in a report sent to Rigzone on October 3, talking about Baker Hughes’ September 29 rig count.
“According to the latest Baker Hughes survey, the U.S. oil rig count fell five week on week to a 18- month low of 502 rigs. The year on year decline stands at 102 rigs, while the year to date decline is 119 rigs,” they added in that report.
“The latest fall was led by the Permian Basin of west Texas and New Mexico; the Midland Basin rig count fell two to 113, while oil activity was unchanged at 171 in the Delaware Basin and other Permian activity fell four to 24 rigs,” the analysts continued.
Baker Hughes’ September 22 count revealed that North America went back to losing rigs week on week. In that rig count, the company outlined that the U.S. dropped 11 rigs, while Canada’s count stayed the same, leading to a total weekly loss of 11 rigs for the region.
In its September 15 count, Baker Hughes showed that North America had broken a string of consecutive weekly rig losses. That rig count revealed that the region added 17 rigs week on week, with nine of these coming from the U.S. and eight from Canada.
The company’s September 8 count revealed that North America’s rig count dropped by four week on week, its September 1 count showed that North America cut four rigs week on week, its August 25 count showed that North America dropped nine rigs week on week, and its August 18 count showed that the region cut 13 rigs week on week. Baker Hughes’ August 11 count showed that North America dropped three rigs week on week and its August 4 count showed that North America dropped 10 rigs week on week.
Baker Hughes’ July 28 count revealed that North America added one rig week on week, its July 21 count showed that North America lost six rigs week on week, and its July 14 count showed that North America added seven rigs week on week. The company’s July 7 count highlighted that the region added 14 rigs week on week, and its June 30 count showed that the region dropped 10 rigs week on week.
Prior to the rig count released on June 30, North America had been on a streak of rig additions. The company’s June 23 count outlined that North America increased its rig count by five week on week and its June 16 count showed that North America added 15 rigs week on week. In the rig count prior to that, which was published on June 9, Baker Hughes revealed that North America had finally broken a rig loss streak which had gone on for several weeks. The region was shown in that count to have added 38 rigs week on week.
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, which produces daily rig counts using GPS tracking units.
To contact the author, email andreas.exarheas@rigzone.com
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