North America Sees Rig Losses
Posted 26/09/2023 13:38
North America saw a decline in the number of rigs week on week, according to Baker Hughes' latest rotary rig count published on September 22.
The United States experienced a drop of 11 rigs, while Canada's count remained stable, resulting in an overall loss of 11 rigs for the region. North America's total rig count now stands at 820, with 630 rigs in the U.S. and 190 in Canada.
Of the 630 rigs in the U.S., 608 are land rigs, 19 are offshore rigs, and three are inland water rigs. The U.S. rig count comprises 507 oil rigs, 118 gas rigs, and five miscellaneous rigs. Baker Hughes reported that there were 11 fewer land rigs in the U.S. compared to the previous week, with eight oil rigs and three gas rigs also being dropped.
In Canada, the total rig count is 190, consisting of 115 oil rigs and 75 gas rigs. The country added four gas rigs but dropped four oil rigs week on week.
Comparing current figures to a year ago, North America is down 159 rigs, with the U.S. accounting for a decline of 134 rigs and Canada 25 rigs. Year on year, the U.S. reduced its number of oil rigs by 95 and gas rigs by 42 while adding three miscellaneous rigs. Canada dropped 33 oil rigs and added eight gas rigs year on year.
The previous rig count published on September 15 showed that North America had broken a series of consecutive weekly rig losses, with the region adding 17 rigs. The U.S. contributed nine of those rigs, while Canada added eight.
Analysts at Standard Chartered noted that the U.S. oil rig count had increased for two consecutive weeks for the first time since November 2022, indicating tentative signs of a potential turnaround in drilling activity as oil prices rise.