US: Baker-Hughes Rig Count

Fri Mar 09 12:00:00 CST 2018

Actual Previous
N. Amer. Rig Count 1257 1283
U.S. 984 981
Gulf of Mexico 13 14
Canada 273 302

The Baker Hughes North American rig count is down 26 rigs in the March 9 week to 1,257. The U.S. rig count is up 3 rigs from last week to 984 and is up 216 rigs from last year at this time. The Canadian count is down 29 rigs from last week at 273 and is down 42 rigs compared to last year.

For the U.S. count, rigs classified as drilling for oil are down 4 at 796 but gas rigs are up 7 at 188. For the Canadian count, oil rigs are down 15 at 196 and gas rigs are down 14 at 77.

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.

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).