US: Baker-Hughes Rig Count


February 23, 2018 01:00 EST

Actual Previous
N. Amer. Rig Count 1284 1293
U.S. 978 975
Gulf of Mexico 17 18
Canada 306 318

Highlights
The Baker Hughes North American rig count is down 9 rigs in the February 23 week to 1,284. The U.S. rig count is up 3 rigs from last week at 978 and is up 224 rigs from last year at this time. The Canadian count is down 12 rigs from last week at 306 and is down 35 rigs compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 1 at 799 and gas rigs are up 2 at 179. For the Canadian count, oil rigs are down 9 at 209 and gas rigs are down 3 at 97.

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).