A decline in natural gas-directed drilling saw the U.S. rig count fall three units to 750 for the week ended Friday (July 1), according to the latest figures from oilfield services provider Baker Hughes Co. (BKR).
One oil-directed rig was added domestically for the week, while natural gas-directed rigs declined by four. The combined 750 active U.S. rigs as of Friday compares with 475 rigs running in the year-earlier period, according to the BKR numbers, which are partly based on data from Enverus.
Land drilling declined by four units in the United States week/week, while the Gulf of Mexico added one rig to raise its total to 16. Declines of three horizontal rigs and two vertical rigs were partially offset by a two-rig increase in directional drilling, the BKR data show.
In Canada, seven natural gas-directed rigs and five oil-directed rigs were added. That lifted the Canadian rig count 12 units overall to 166 for the week, up from 136 in the year-ago period.
Broken down by major region, the Cana Woodford saw a five-rig decrease week/week, lowering its total to 27, versus 17 a year ago. Four rigs exited in the Eagle Ford Shale, while the Marcellus and Utica shales each posted one-rig declines. On the other side of the ledger, the Ardmore Woodford and Arkoma Woodford each added a rig, according to the BKR data.
Counting by state, Texas dropped two rigs week/week, while Ohio, Pennsylvania and Utah each dropped one. Louisiana and New Mexico each added a rig.
Earlier in the week, OPEC-plus affirmed its intentions to ramp up production in July and August. The cartel is targeting output growth of 648,000 b/d both months.
Should OPEC-plus meet its target, its average crude generation would climb to nearly 44 million b/d by August, on par with pre-pandemic levels.
This comes as global demand is mounting along with summer travel, China’s emergence from spring coronavirus lockdowns, and hits to Russian oil output amid its invasion of Ukraine. The International Energy Agency projected that demand would eclipse 100 million b/d this summer – a first since the onset of the pandemic – and hold above that level for the year.
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