U.S. Sheds One Natural Gas Rig as Domestic Activity Steadies; Canadian Units Climb

By Kevin Dobbs

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Published in: Daily Gas Price Index Filed under:

The U.S. natural gas rig count fell by one unit to 100 for the week ended Friday (July 12) as drilling activity leveled off, according to updated Enverus and Baker Hughes Co. (BKR) data.

NGI's Baker Hughes U.S. rig count chart and graph

Including a one-rig decrease in the U.S. oil patch and a gain of one in the miscellaneous unit tally, the combined domestic rig count slipped by one to 584 for the period, according to the latest numbers. The total count was down 91 from a year earlier, with gas rigs 33 lower.

Total vertical rigs were flat week/week at 18 in the United States. Horizontal rigs were also even, at 517. The latest total included a net decrease of one directional unit to 49.

Wood Mackenzie data Friday showed the seven-day U.S. natural gas production average at 101.1 Bcf/d, roughly in line with the 30-day average. It projected Lower 48 output would average 101 Bcf/d in the week ahead. While production ramped up early in the summer – after falling to lows in the mid-90s Bcf/d in the spring – the firm said output had steadied in recent weeks.

NGI's Canada rigs chart
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The Canadian rig count, meanwhile, climbed by 14 week/week to end the July 12 period at 189. Canadian gas rigs were up three to 63, and oil was up 11 to 126, the Enverus and BKR data showed.

Relative to the comparable period a year ago, the Canada rig count was up two to 187, with oil units up 12 and gas rigs down 10.

Canadian production approached record levels above 18 Bcf/d during the winter months early this year, according to RBN Energy LLC. But drilling activity did slow in the spring amid what’s known as the Canadian spring break-up, when ground conditions thaw and often prevent the movement of heavy equipment, RBN noted. Canadian production at points slipped below the 18 Bcf/d level during the spring and early summer.

NGI's shale rigs chart

Among Lower 48 plays, the Eagle Ford Shale dropped one net rig in the latest week to finish at 48. Other major plays were even week/week.

By state, Louisiana added one rig and Texas dropped two week/week; no other states posted weekly changes.

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Kevin Dobbs

Kevin Dobbs joined the staff of NGI in April 2020. Prior to that, he worked as a financial reporter and editor for S&P Global Market Intelligence, covering financial companies and markets. Earlier in his career, he served as an enterprise reporter for the Des Moines Register. He has a bachelor's degree in English from South Dakota State University.