North America Sees an Increase of 28 Rigs: Weekly Analysis

Overview of Rig Count Changes in North America

According to Baker Hughes’ latest North America rotary rig count published on January 16, 2023, North America has witnessed an increase of 28 rigs week on week. This adjustment has significant implications for the energy sector as the rig count serves as an essential indicator of drilling activity and a gauge of future production capacity.

Dissection of Rig Counts

Despite a minor decline, the total U.S. rig count fell by one, landing at 543 rigs. Interestingly, the Canadian rig count rose by 29, contributing to an aggregate rig count in North America of 769. This figure is comprised of 543 rigs from the U.S. and 226 from Canada. The breakdown of the U.S. rig count further reveals that 524 of them are categorized as land rigs, while 16 are classified as offshore rigs and three fall under inland water rigs. Specifically, the U.S. houses a total of 410 oil rigs, 122 gas rigs, and 11 miscellaneous rigs, demonstrating the country’s diverse yet concentrated drilling operations.

Implications for the Energy Sector

The increase of 28 rigs in North America showcases a positive trend in drilling activity, particularly in Canada, which could indicate a resurgence in exploration and production efforts. This growth may be attributed to various factors, including rising oil prices and a recovering market, prompting operators to invest in their operations. It is critical to monitor these developments closely, as they will undoubtedly influence energy supply chains and commodity markets. The recent trend reflects both opportunities and challenges for stakeholders, from drilling companies to energy consumers.