The Baker Hughes North American rig count is up 33 rigs in the June 16 week to 1,092, the seventh consecutive weekly increase and the second largest in the series after the 44 rig gain last week. The U.S. rig count is up 6 to 933 and is up 509 rigs from last year in this period. But while the U.S. count is showing the steady rate of increase seen for several months now, it is the Canadian count that is booming in the last two weeks, up 27 this week to 159 after rising 33 rigs last week, as Canadian rig operators come back into operation after their Spring Breakup hiatus.
For the U.S. count, rigs classified as drilling for oil are up 6 to 747, gas rigs are up 1 to 186, and miscellaneous rigs are down 1 to 0. For the Canadian count, oil rigs are up 17 to 91 and gas rigs are up 10 to 68.
The sharply rising rig count in recent weeks appears to be unaffected by a 14 percent decline in the price of crude oil to around $44.63 per barrel in the past 3 weeks, and continues to point to higher North American crude oil production ahead, increasing the downward pressure on oil prices in conjunction with bulging U.S. inventories and declining U.S. demand.