US: Baker-Hughes Rig Count


Fri Jun 08 12:00:00 CDT 2018

Actual Previous
N. Amer. Rig Count 1174 1159
U.S. 1062 1060
Gulf of Mexico 19 18
Canada 112 99

Highlights
The Baker Hughes North American rig count is up 15 rigs in the June 8 week to 1,174. The U.S. rig count is up 2 rigs from last week to 1,063 and is up 135 rigs from last year at this time. The Canadian count is up 13 rigs from last week to 112 but is down 20 rigs compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 1 at 862, gas rigs are up 1 at 198 and miscellaneous rigs remain unchanged at 2. For the Canadian count, rigs classified as drilling for oil are up 13 at 69 and gas rigs are unchanged at 43.

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).