The Baker Hughes North American rig count is down 3 rigs in the August 25 week to 1,157, the fourth consecutive weekly drop that extends a decline halting a long string of weekly increases in previous months. The U.S. rig count is down 6 rigs to 940 but is up 451 rigs from last year. The Canadian count is up 3 rigs to 217 and is up 71 rigs from last year.
For the U.S. count, rigs classified as drilling for oil are down 4 rigs to 759 and gas rigs are down 2 rigs to 180. For the Canadian count, oil rigs are down 6 rigs to 115 but gas rigs are up 9 rigs to 102.
The rig count in Texas fell by 3 rigs to 456 rigs this week, which could reflect precautionary shutdowns in preparation for hurricane Harvey, expected by the National Hurricane Center to cause catastrophic flooding across portions of southern and southeastern Texas after making landfall late Friday and early Saturday. But since the other 3 U.S. rigs taken out commission this week are out of Harvey's reach in Pennsylvania, the decline this week, as in the prior three weeks, more likely reflects the reaction of exploration and development companies to the fact that oil prices have not been able to stay above $50 per barrel, a level that would put most North American rigs comfortably above their break-even point.