US: Baker-Hughes Rig Count

Fri Apr 20 12:00:00 CDT 2018

Actual Previous
N. Amer. Rig Count 1106 1110
U.S. 1013 1008
Gulf of Mexico 18 16
Canada 93 102

The Baker Hughes North American rig count is down 4 rigs in the April 20 week 1,106, pulled down as it has been for several consecutive weeks despite gains in the U.S. by the seasonal "spring thaw" in Canada, when muddy terrain makes moving drilling equipment difficult and environmentally prohibitive. The U.S. rig count is up 5 rigs from last week to 1,013 and is up 156 rigs from last year at this time. The Canadian count is down 9 rigs from last week to 93 and is down 6 rigs compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 5 at 820, gas rigs remain unchanged at 192 and miscellaneous rigs unchanged at 1. For the Canadian count, oil rigs are down 3 at 38 and gas rigs down 6 at 55.

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).