Weekly Active Rigs Count: Count Surges In The US, Falls In Canada

Every week for over 70 years, Baker Hughes Incorporated BHI has been publishing rotary rig counts for the United States and Canada. In addition, the company has also rolled out a monthly international rig count -- for the last 40 years.

The oilfield services supplier assures the rig counts are “an important business barometer for the drilling industry and its suppliers. When drilling rigs are active they consume products and services produced by the oil service industry. The active rig count acts as a leading indicator of demand for products used in drilling, completing, producing and processing hydrocarbons.”

North America & The World

On Friday, the company released its latest rig count. As of August 21, the United States had 885 active rigs, one more than last week. Although the figure continues to surge week-over-week, it still implies a massive decline from the 1,896 rigs operating a year ago.

Canada, on the other hand, saw its downtrend continue. Over the week, America’s Hat witnessed a 1.4 percent decline in active rigs to 208. A year ago, the count ascended to 405 rigs.

On a global scale – ex North America, the rig count continued to fall. After declining roughly 1 percent, month-over-month, in June, July saw a 2.44 percent tumble in the count, which now stands at 1118 rigs. This compares to 1382 active rigs counted in July 2014.

Oil And Gas

The report also differentiates between oil and gas rigs. Looking into the details, this week’s surge in U.S. active rigs was driven by an increase in active oil rigs, from 672 last week to 674 this week. Meanwhile, gas rigs remained untouched, while those categorized as “miscellaneous” fell from 1 last week, to none this week.

Canada, on the other hand, saw its total rig count fall on the back of a 3 percent reduction in active oil rigs, which fell from 100 last week to 97 this week.

The Stock Market

The United States Oil Fund LP (ETF) USO is down almost 0.7 percent on Friday trading, while Baker Hughes is tumbled more than 2 percent.

Among the 20 largest companies (by market cap) in the oil & gas segment, 19 are falling on Friday as well. Among Oil & Gas Related Equipment and Services stocks, most are down as well.

Some of the biggest large and mega-cap losers of the day include Valero Energy Corporation VLO, down more than 7 percent, Phillips 66 PSX, down 3.67 percent, and Enterprise Products Partners L.P. EPD, down 2.25 percent.