Now exactly one year past bottom of rig count
Baker Hughes (ticker: BHI) released its weekly rig count today, showing an increase in active U.S. rigs for the nineteenth- straight week. After breaking 900 for the first time since 2015 last week, American rigs continued their growth this week, ending at 908 active rigs. A total of 504 more rigs are online today than this time last year. In fact, this time last year was the bottom of the rig count cycle, when there were only 404 rigs online in the U.S.
Seven rigs came online in the U.S., all land-based rigs. Two of these rigs are targeting oil formations, while the remaining five target gas. This is nearly the opposite of overall proportions, as a total of 722 oil rigs are active in the U.S., while only 185 gas rigs are online. Seven horizontal rigs were added this week, meaning there are 766 horizontal rigs running currently. One directional rig came offline, while one vertical rig became active.
Surprisingly, Texas did not add rigs this week; instead the One Star State lost one to end the week at 458. This week Colorado was the most popular state, adding five rigs. One rig came online in Alaska, New Mexico, North Dakota and Oklahoma this week.
Almost all of the rigs that moved to Colorado went to the DJ-Niobrara, which saw an increase of four rigs this week. Three more came online in the Cana Woodford, while the Eagle Ford, Permian and Williston each added one rig. Of the major basins that Baker Hughes tracks, only the Granite Wash saw a decrease in rigs, losing one to end the week at nine.
Canada continuing to recover
Canada appears to have completed the “spring breakup” cycle, in which rigs come offline in springtime. This week eight Canadian rigs came online, the second week of rig growth. The current Canadian rig count is 93, 259 below the peak of 352 in February but still 50 more than at this point last year. Unlike the U.S., in Canada there are more gas rigs active than oil rigs. Fifty three gas rigs are online in Canada this week, compared to forty oil rigs.
