Despite a slight rebound in U.S. activity, Canada’s sharp drop drags the total count lower
North America’s rotary rig count has declined for the eighth straight week, falling by four rigs week on week, according to the latest data released by Baker Hughes on April 25.
The total rig count across the U.S. and Canada now stands at 715, down from 719 the previous week. The U.S. added two rigs, bringing its total to 587, while Canada saw a significant drop, losing six rigs to end at 128.
U.S. Rig Activity: Modest Gains Amid Stability
Of the 587 U.S. rigs currently active, 571 are land-based, 13 are offshore, and three are operating on inland waters. The breakdown includes 483 oil rigs, 99 gas rigs, and five classified as miscellaneous.
The U.S. saw a slight uptick this week:
– Oil rigs: +2
– Gas rigs: +1
– Miscellaneous rigs: -1
In terms of drilling orientation, horizontal rigs held steady at 527, while directional and vertical rigs each increased by one, totaling 45 and 15 respectively.
Geographically, Oklahoma led the gainers with two additional rigs. California added one, while Utah lost one. On the basin level, the Granite Wash gained two rigs, and both the Haynesville and Arkoma Woodford basins added one. However, the Ardmore Woodford and Cana Woodford basins each lost one rig.
Canada: Significant Weekly Drop
Canada’s total rig count now sits at 128, comprising 81 oil rigs and 47 gas rigs. The decline was driven entirely by oil rigs, which fell by six week on week, while gas rigs remained unchanged.
Year-on-Year Trends
Compared to this time last year, North America’s total rig count is down by 16. The U.S. has shed 26 rigs year over year — 23 oil rigs and six gas rigs, while adding three miscellaneous rigs. In contrast, Canada has gained a net of 10 rigs, adding 25 oil rigs but losing 15 gas rigs.
Tight Oil and Gas Basins Hold Steady
According to a research note by J.P. Morgan analysts, U.S. oil and gas rigs rose by two overall. The five major tight oil basins (as defined by the EIA) maintained a stable rig count of 452. Meanwhile, the rig count in two major tight gas basins increased by one to 72, with Haynesville accounting for the gain — the third rig added there over the past four weeks.
A Downward Trend Since Early March
The steady decline in North American rigs has been consistent since March:
– April 17: -2 rigs
– April 11: -22 rigs
– April 4: -12 rigs
– March 28: -18 rigs
– March 21: -18 rigs
– March 14: -35 rigs
– March 7: -15 rigs
This trend follows a mixed start to the year, with several weeks of gains in January and February.
Baker Hughes, which has tracked rotary rig activity since 1944, views the count as a vital industry indicator. The data is compiled in part with the help of Enverus, a provider of energy analytics.
About the Author
