North America Posts Another WoW Rig Loss
This article was first published on Rigzone here
North America cut one rig week on week, according to Baker Hughes’ latest rotary rig count, which was published on September 6.
The U.S. dropped one rig week on week in total, while Canada’s total rig count remained unchanged during the same timeframe, taking the total North America rig count down to 802, comprising 582 rigs from the U.S. and 220 from Canada, Baker Hughes’ latest rotary rig count outlined.
Of the total U.S. rig count of 582, 562 are categorized as land rigs, 19 are categorized as offshore rigs, and one is categorized as an inland water rig. The total U.S. rig count is made up of 483 oil rigs, 94 gas rigs, and five miscellaneous rigs, according to the count, which showed that the total U.S. rig figure comprises 520 horizontal rigs, 48 directional rigs, and 14 vertical rigs.
The count highlighted that, week on week, the U.S. cut one land rig. The country dropped one gas rig and its horizontal rig count reduced by one during the same period, the count revealed. Week on week, West Virginia added two rigs and New Mexico added one rig, while Pennsylvania cut two rigs and Oklahoma dropped one rig, the count showed.
Canada’s total rig count of 220 comprises 152 oil rigs, 67 gas rigs, and one miscellaneous rig, Baker Hughes’ count pointed out. The country added one miscellaneous rig and dropped one oil rig week on week, the count highlighted.
The total North America rig count is down 12 compared to year ago levels, according to Baker Hughes, which outlined that the U.S. has driven this decline, cutting 50 rigs during the period while Canada’s count increased by 38. The U.S. has cut 30 oil rigs, 19 gas rigs, and one miscellaneous rig, while Canada has added 39 oil rigs and one miscellaneous rig, and cut two gas rigs, year on year, the count revealed.
In an oil drilling report sent to Rigzone on Friday by the JPM Commodities Research team, J.P. Morgan analysts highlighted that “total U.S. oil and gas rigs fell by one to 582 this week”.
“Oil-focused operators remained flat at 483 rigs, a third week with no change to the count. Natural gas-focused rigs fell by one to 94 rigs, setting a new low in rig count for this year,” the analysts added.
“The rig count in the five major tight oil basins remained flat. We cut our 4Q24 WTI price forecast from $81 to $76. Yet, substantially softer balance in 2025 is forcing the market … [to] search for a price that will prevent OPEC+ from bringing back volumes that are not needed,” they continued.
“As long as OPEC+ continues to delay the decision of when to restore 2.2 million barrels per day of voluntary cuts, price weakness may continue,” they went on to state.
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In the report, the analysts noted that a WTI price below $70 puts a downside risk to their expectations of seven rigs addition by year-end. They added that a sustained price below $65 would likely trigger an outright decline in the current rig count.
In its previous rig count, which was published on August 30, Baker Hughes revealed that North America dropped one rig week on week. The U.S. dropped two rigs week on week, while Canada added one rig during the same timeframe, that count showed.
Baker Hughes’ August 23 count revealed that North America added one rig week on week, its August 16 count revealed that North America dropped two rigs week on week, and its August 9 count showed that North America’s rig count stayed flat week on week.
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Baker Hughes’ August 2 rig count showed that North America added five rigs week on week, its July 26 count showed that North America added 17 rigs week on week, its July 19 count revealed North America added 10 rigs week on week, and its July 12 count showed that North America added 13 rigs week on week.
The company’s July 5 count revealed that North America added three rigs week on week, its June 28 count also showed that North America added three rigs week on week, its June 21 rig count revealed that North America added four rigs week on week, and its June 14 count showed that North America added 13 rigs week on week.
Baker Hughes’ June 7 count revealed that North America added nine rigs week on week, its May 31 count showed that North America added eight rigs week on week, and its May 24 rig count highlighted that North America added two rigs week on week.
The company’s May 17 count revealed that North America dropped one rig week on week, its May 10 count showed that North America dropped six rigs week on week, its May 3 count also showed that North America dropped six rigs week on week, its April 26 count showed that North America dropped 15 rigs week on week, and its April 19 count showed that North America cut 12 rigs week on week.
Baker Hughes’ April 12 count revealed that North America added two rigs week on week, and its April 5 count showed that North America cut 16 rigs week on week.
The company’s March 28 count revealed that North America dropped 21 rigs week on week, its March 22 count showed that the region cut 43 rigs week on week, its March 15 count showed that the region cut 11 rigs week on week, and its March 8 rig count showed that North America dropped 13 rigs week on week.
Baker Hughes’ March 1 rig count revealed that North America added three rigs week on week, its February 23 rig count showed that North America added two rigs week on week, and its February 16 count showed that North America’s rig count remained unchanged week on week.
The company’s February 9 rig count revealed that North America increased its rig count by four rigs week on week, its February 2 count showed that North America’s rig count stayed flat week on week, and its January 26 rig count showed that North America increased its rig count by eight rigs week on week.
Baker Hughes’ January 19 count revealed that North America increased its rig count by 11 rigs week on week, its January 12 rig count showed that North America increased its rig count by 86 rigs week on week, and its January 5 rig count, which marked the company’s first rotary rig count of 2024, showed that North America added 38 rigs week on week.
The company’s final rotary rig count of 2023 showed a notable week on week and year on year drop for North America. The region’s rig count decreased by 58 week on week and by 155 year on year, according to that count, which was released on December 29.
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 notes that working rig location information is provided in part by Enverus.
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Publish date : 2024-09-08 21:55:00
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