North America Adds Three Rigs, Driven by Canada’s Increase

North America added three rigs week on week, according to Baker Hughes’ latest rotary rig count released on June 28. While the U.S. saw a decrease of seven rigs, Canada added ten, bringing the total North American rig count to 757, with 581 rigs in the U.S. and 176 in Canada. In the U.S., out of the total 581 rigs, 560 are land rigs, and 21 are offshore rigs. The breakdown includes 479 oil rigs, 97 gas rigs, and five miscellaneous rigs. The U.S. rig count consists of 518 horizontal rigs, 45 directional rigs, and 18 vertical rigs. Over the past week, the U.S. saw a decrease of seven land rigs, with the gas rig count dropping by one and the oil rig count by six. The U.S. also reduced its horizontal rigs by seven and vertical rigs by one, while its directional rigs increased by one. Texas dropped five rigs, and both Oklahoma and New Mexico each cut one rig. Canada’s total rig count stands at 176, comprising 116 oil rigs, 59 gas rigs, and one miscellaneous rig. The country added seven oil rigs, two gas rigs, and one miscellaneous rig over the week. Year on year, the North American rig count is down by 84 rigs. The U.S. has driven this decline, reducing its count by 93 rigs, while Canada’s count has increased by nine. Specifically, the U.S. cut 66 oil rigs and 27 gas rigs, whereas Canada added seven oil rigs, one gas rig, and one miscellaneous rig. J.P. Morgan analysts noted in a report sent to Rigzone on June 28 that the rig count in the five major tight oil basins fell by seven rigs, marking the largest weekly drop since August 2023.

The analysts indicated that while improved drilling and fracturing efficiencies allow for production growth with fewer rigs, further sustained reductions in the U.S. oil rig count could materially impact U.S. crude and condensate production by 2025. They projected that without additional efficiency improvements or an increase in the oil rig count, sustained lower drilling activity in the second half of 2024 could reduce the 2025 production forecast by 90,000 barrels per day. Despite these reductions, the analysts still foresee the U.S. contributing 750,000 barrels per day to total liquids supply growth in 2025, accounting for 42 percent of the expected 1.8 million barrels per day increase in non-OPEC+ output. In recent counts, Baker Hughes reported that North America added four rigs in the week ending June 21.
Earlier counts indicated various changes, with some weeks showing increases and others decreases in the number of active rigs. Baker Hughes has been issuing rotary rig counts to the petroleum industry since 1944, providing critical business indicators for the drilling industry and its suppliers.
The company gathers working rig location information partly from Enverus.