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    US and Canada both post upstream gains: Baker Hughes

Summary

North American increases in rig activity were strong on the week.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Exploration & Production, Shale Gas , Shale Oil, News By Country, Canada, United States

US and Canada both post upstream gains: Baker Hughes

North American gains in upstream activity were boosted by increases in both Canada and in the United States, Baker Hughes noted in its August 13 rig count.

In one of the largest gains since early in the second quarter, Baker Hughes recorded 664 rigs in service across North America. That represents an increase of 17 from the previous week.

The US led the gains, with a net increase of nine from last week, to 500. There were 10 new rigs working in oil, while natural gas activity declined by one.

By basin, both the Eagle Ford shale in Texas and the Williston shale in the Dakotas saw the most gains in activity, with each seeing an increase of four on the week. Haynesville lost two gas rigs, but gained one in oil. The Haynesville decline in gas rigs was offset by gains elsewhere to yield a net US decline in natural gas of one rig.

Oil dominates US upstream activity, with about 80% of the total work focused on oil.

In Canada, resource-rich Alberta led the pack with a net gain of seven rigs, while Saskatchewan saw an increase of two. That was offset by the loss of one rig in British Columbia to give Canada a net increase of eight rigs on the week, bringing the count to 164.

Using data provided by Enverus, Baker Hughes does not break down oil and gas activity to the provincial level for Canada.

As with the US, oil dominates the Canadian landscape, accounting for about 61% of total upstream work.

US drillers continue to exercise restraint despite multi-year highs in commodity prices. While the 500 rigs in service this week mark a sharp increase from last year, the US rig count for this week in 2019 was 935.