The Baker Hughes North American rig count is up 18 rigs in the June 30 week to 1,129, the ninth consecutive weekly increase that, however, shows some deacceleration of the pace seen earlier in the month and features a large increase in the Canadian count overshadowing a minimal drop in the U.S. count. The U.S. rig count is down 1 to 940 and is up 509 rigs from last year in this period. The Canadian count is up 19 rigs from last week to 189 and is up 113 rigs from last year.
For the U.S. count, rigs classified as drilling for oil are down 2 to 756 while gas rigs are up 1 to 184. For the Canadian count, oil rigs are up 14 to 112 and gas rigs are up 5 to 77.
The strong weekly rise in the Canadian count continues to show Canadian drillers coming back into operation after a 3 month hiatus for the Spring breakup, and indicates that current oil prices are still attractive to many exploration and development companies, but the first drop in the U.S. oil rig count after 23 consecutive weeks of increases probably indicates that oil prices, after dropping below $43 per barrel in the prior week are getting too low for some oil drillers.