US: Baker-Hughes Rig Count

Fri Jun 01 12:00:00 CDT 2018

Actual Previous
N. Amer. Rig Count 1159 1140
U.S. 1060 1059
Gulf of Mexico 18 18
Canada 99 81

The Baker Hughes North American rig count is up 19 rigs in the June 1 week to 1,159. The U.S. rig count is up 1 rig from last week to 1,060 and is up 144 rigs from last year at this time. The Canadian count is up 18 rigs from last week to 99 and is unchanged compared to last year.

For the U.S. count, rigs classified as drilling for oil are up 2 at 861, gas rigs are down 1 at 197 and miscellaneous rigs remain unchanged at 2. For the Canadian count, rigs classified as drilling for oil are up 21 at 56 and gas rigs are down 3 at 43.

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).