The Baker Hughes North American rig count fell by 11 rigs to 997 in the Feb. 24 week from a week ago and rose 123 from 874 a year ago. Rigs have generally been trending higher from a low of 278 in late June 2020.

The U.S. rig count is down 7 from last week at 753 and up 103 rigs from 650 last year at this time. The Canadian count fell 4 rigs from last week to 244 and compared to last year is up 20 rigs. The Gulf of Mexico rig count is flat at 17 in the latest week from last week, and up 5 from a year ago.

For the U.S. count, rigs classified as drilling for oil are down 7 at 600, gas rigs are unchanged at 151, and miscellaneous rigs are flat at 2. For the Canadian count, oil rigs are down 5 at 158 and gas rigs are up 1 at 86.

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).