US: Baker-Hughes Rig Count


Fri Feb 02 12:00:00 CST 2018

Actual Previous
N. Amer. Rig Count 1288 1285
U.S. 946 947
Gulf of Mexico 16 17
Canada 342 338

Highlights
The Baker Hughes North American rig count is up 3 rigs in the February 2 week to 1,288. The U.S. rig count is down 1 rig from last week to 946 but is up 217 rigs from last year at this time. The Canadian count is up 4 rigs from last week to 342 but is down 1 rig compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 6 at 765 but gas rigs are down 7 at 181. For the Canadian count, oil rigs are up 14 at 234 but gas rigs are down 10 at 108.




Definition
The Baker Hughes North American rig count tracks weekly changes in the number of active operating oil & gas rigs. Used for drilling wellbores for wells that may eventually produce oil or gas, active rigs are essential for the exploration and development of oil and gas fields. Rigs that are not active are not counted. Components in the data are the United States and Canada with a separate count for the Gulf of Mexico (which is a subset of the U.S. total). The count includes only rigs that are significant users of oilfield services and supplies.

Description
Changes in rig counts point to changes in the supply of oil & gas. The higher the rig count, the greater the upward pressure is on oil & gas supply and in turn the greater the downward pressure is on oil & gas prices. The reverse applies when rig counts turn lower, as they did during the oil price collapse of 2014-15 when lower counts contributed to a subsequent decline in domestic oil inventories. Data on the Gulf of Mexico offer indications on production disruptions during the hurricane season (June 1st to November 30th).