1,060 rigs currently drilling; 929 are horizontal rigs

Drilling activity in the U.S. rose by only one rig his week, but it was enough to continue the positive momentum, with overall net U.S. rig count showing growth for the ninth-straight week, according to Baker Hughes.

A net one rig began drilling this week, a far lower increase than the 13 that began drilling last week. There are now a total of 1,060 rigs drilling in the U.S., comparable to the activity level in March 2015. Three land-based rigs came online, while two inland waters shut down. This leaves 1,039 land-based, two inland waters and 19 offshore rigs active in the country.

Operations shifted further in favor of oil drilling, with two such rigs coming online. One gas-targeting rig shut down, meanwhile, leaving 861 oil, 197 gas and two miscellaneous rigs active. While the total number of rigs active in the U.S. has grown significantly, the proportion of oil rigs has been relatively consistent since early 2016, averaging 80.3% and ranging from 79.1% to 81.8%. Overall oil drilling has been increasing in popularity, but the change has been small.

Rigs Up Again: Slight Increase Marks Ninth-Straight Rig Count Rise

Source: EnerCom Analytics

Operators also shifted toward horizontal drilling this week, with three horizontal rigs coming online. Two directional rigs shut down, while vertical operations were unchanged. There are now 929 horizontal rigs drilling in the U.S., far beyond the 65 directional and 66 vertical rigs currently active.

The major states tracked by Baker, like the overall rig count, saw only small changes this week. Two rigs came online in Oklahoma, while one began drilling in Colorado, Texas and Wyoming. One shut down in New Mexico and North Dakota, while two came offline in Louisiana.

Three rigs began drilling in the Cana Woodford, two came online in the Eagle Ford, and one started operations in the DJ-Niobrara and Mississippian. Decreases in activity were minimal in the major basins tracked by Baker, with only one rig shutting down in the Permian and Williston. A total of four rigs shut down in minor basins not individually tracked by Baker.

Canadian activity in line with last year

Canadian activity also rose this week, as companies continue to come back online after the spring breakup. Eighteen rigs began drilling in the country this week, meaning there are a total of 99 rigs operational. This is perfectly in line with the activity level at this point last year.

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