US: Baker-Hughes Rig Count


Fri May 25 12:00:00 CDT 2018

Actual Previous
N. Amer. Rig Count 1140 1129
U.S. 1059 1046
Gulf of Mexico 18 18
Canada 81 83

Highlights
The Baker Hughes North American rig count is up 11 rigs in the May 25 week to 1,140. The U.S. rig count is up 13 rigs from last week to 1,059 and is up 151 rigs from last year at this time. The Canadian count is down 2 rigs from last week to 81 and is down 12 rigs compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 15 at 859, gas rigs are down 2 at 198, and miscellaneous rigs remain unchanged at 2. For the Canadian count, rigs classified as drilling for oil are down 3 at 35 and gas rigs are up 1 at 46.

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).