North Dakota at Lowest Rig Count Since January 2010
The number of total rigs drilling in the United States rose for the third straight week, according to the most recent rig count from Baker Hughes (ticker: BHI). Total rigs drilling in the U.S. reached 863 for the week ended July 10, 2015, up just one from last week. The slow climb in total rig count comes after 28-consecutive weeks of decline in the U.S. after a similarly steep drop in oil prices in the second half of last year.
The number of rigs drilling for oil rose by five to 645 rigs, while the number of rigs drilling for gas fell by two, reaching 217 rigs. Interestingly, 13 additional vertical rigs were put to work while 12 directional and horizontal rigs were set down.
Although oil rigs are inching upwards, the Williston Basin saw the largest draw of rigs in operation, setting down six machines. There are currently only 70 running rigs in the basin, its lowest level since January 2010. The Eagle Ford Shale also set down four rigs and is close to dropping below 100. The only other basin in the triple-figures club is the Permian, who offset the declines of its two oil basin peers by adding seven rigs in the latest report.
Canada’s Rig Count Climbs by more than 20%
Canada added 30 rigs to its fleet, increasing its total count to 165 overall, and is at its highest level in four months. Alberta was home to 24 of the added rigs. Canada experiences wide swings in counts due to seasonality; the added rigs don’t necessarily mean the price environment is recovering, but rather is a signal that drilling season is accelerating. Its current count is still roughly half of the rigs in action at this time last year.
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