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    US pulls North American rig count higher: Baker Hughes

Summary

US upstream activity remains well below pre-pandemic levels.

by: Daniel Graeber

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US pulls North American rig count higher: Baker Hughes

The Baker Hughes rig count for July 23 showed US upstream activity led to a net increase in drilling activity in North America.

Using data from Enverus, Baker Hughes reported the North American rig count at 640 for the week ending July 23, an improvement of six from last week. The US rig count improved by seven, while Canada lost one rig.

The entire gain in the US came from oil-related activity. By basin, it was the Permian shale that saw the most increase for the week, with four more rigs coming onstream. By state, Texas led the pack with a gain of six total.

The total US rig count came in at 491, with nearly 80% of that work related to oil.

The Canadian rig count of 149 marked a loss of one from the previous week and the decline was in oil-related activity.

Baker Hughes does not break down oil and gas activity to the provincial level for Canada. Historically, the majority of the upstream work takes place in Alberta.

Just over 60% of the rig activity in Canada was focused on oil.

US upstream activity remains constrained relatively to previous years. The average US rig count in July 2019, to discount the economic damage from the pandemic last year, was 955, while Canada averaged 121.