North America dropped 35 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on March 14.
Although the total U.S. rig count remained unchanged week on week, Canada’s total rig count dropped by 35 during the same period, taking the total North America rig count down to 791, comprising 592 rigs from the U.S. and 199 from Canada, the count outlined.
Of the total U.S. rig count of 592, 576 rigs are categorized as land rigs, 14 are categorized as offshore rigs, and two are categorized as inland water rigs. The total U.S. rig count is made up of 487 oil rigs, 100 gas rigs, and five miscellaneous rigs, according to the count, which revealed that the U.S. total comprises 530 horizontal rigs, 50 directional rigs, and 12 vertical rigs.
Week on week, the U.S. land rig count, offshore rig count, and inland water rig count remained unchanged, the count highlighted. The U.S. gas rig count decreased by one, its oil rig count increased by one, and its miscellaneous rig count remained unchanged, week on week, the count showed. Baker Hughes’ count revealed that the U.S. horizontal rig count decreased by one week on week, while the country’s directional rig count increased by one and its vertical rig count remained unchanged during the period.
A major state variances subcategory included in the rig count showed that, week on week, New Mexico dropped three rigs and Oklahoma added two rigs. A major basin variances subcategory included in Baker Hughes’ rig count showed that the Permian basin dropped three rigs, the Eagle Ford basin dropped one rig, the Granite Wash basin added two rigs, and the Williston basin added one rig, week on week.
Canada’s total rig count of 199 is made up of 139 oil rigs and 60 gas rigs, Baker Hughes pointed out. The country’s gas rig count dropped by four, and its oil rig count dropped by 31, week on week, the count outlined. Canada’s miscellaneous rig count remained unchanged during the period, Baker Hughes revealed.
The total North America rig count is down 45 compared to year ago levels, according to Baker Hughes’ count, which showed that the U.S. has cut 37 rigs and Canada has dropped eight rigs, year on year. The U.S. has dropped 23 oil rigs and 16 gas rigs, and added two miscellaneous rigs, while Canada has dropped 19 gas rigs and added 11 oil rigs, year on year, the count revealed.
In a research note sent to Rigzone by the JPM Commodities Research team on Friday, analysts at J.P. Morgan noted that “total U.S. oil and gas rigs remained unchanged at 592 this week, according to Baker Hughes”.
“Oil-focused operators increased by one to 487 rigs, after remaining flat last week. Natural gas-focused rigs fell by one to 100 rigs, after last week’s loss of one. The rig count in the five major tight oil basins, we use the EIA basin definition, remained flat at 464 rigs,” they added.
“This week, the rig count in the major tight oil basins held steady, with the Anadarko basin adding two rigs, the Bakken adding one, the Permian losing three, and all other regions remaining unchanged,” the analysts went on to state.
“Although the overall rig count closely aligns with our estimates, we note that the rig count in the Anadarko basin is running 11 rigs above our forecast. This increase, with the basin adding seven rigs over the last six weeks, can be broadly attributed to a more favorable natural gas price environment,” they continued.
“If the activity in the Anadarko basin is sustained throughout 2025, we estimate a modest impact on oil production growth of ~10 kbd and ~50 Mmcf/day impact on natural gas output,” the J.P. Morgan analysts noted.
In its previous rig count, which was released on March 7, Baker Hughes revealed North America dropped 15 rigs week on week. The U.S. cut one rig week on week and Canada dropped 14 rigs during the same period, Baker Hughes outlined in that count.
Baker Hughes’ February 28 count 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.
Source: By Andreas Exarheas from Rigzone.com