U.S. rig count jumps by 22 to total 635

(World Oil) — Baker Hughes rig count released Friday shows the United States has added 22 rigs since last week, bringing its total count to 635. This shows an increase of 238 rigs from last year, and brings North America’s total rig count to 854.

Compared to a record low U.S. count of 244 in August 2020, the rig count is up 160%.

Rig counts are also increasing internationally, with Canada adding one to total 219 since last week and other countries adding seven to total 841 since last month, according to Baker Hughes. Canada’s number of rigs have increased by 43 in the past year, and other international rigs have increased by 164 in the past year.

Of the 22 rigs added in the United States, 13 are in Texas. Utah, Pennsylvania, Oklahoma and North Dakota all saw rig increases, while Louisiana and West Virginia both decreased by one.

In the U.S., 617 rigs are on land, 16 are offshore and two are in inland waters, Baker Hughes shows. The majority of U.S. rigs, 516, are oil rigs.

Also this week, Energy Information Administration data showed oil output will average 12.6 million barrels a day in 2023, an increase from its previous estimate of 12.41 million. The current annual all-time high of 12.3 million barrels a day was set in 2019, Bloomberg reported, adding that a scorching price rally is driving producers to boost drilling. 

Baker Hughes Rig Counts are described as 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.