BHI: Global rig count in January recorded first year-over-year increase since 2014

The ongoing drilling rebound in North America has given the global rig count its first year-over-year increase since December 2014, a month that marked the beginning of a drilling dive that lasted to mid-2016.

Content Dam Ogj Online Articles 2017 02 Jan 2017 Bhi Global Rig Count

The ongoing drilling rebound in North America has given the global rig count its first year-over-year increase since December 2014, a month that marked the beginning of a drilling dive that lasted to mid-2016.

The worldwide rig count for January increased 27 units compared with the January 2016 count to average 1,918, according to Baker Hughes Inc. data. The new tally is up 146 units from the December 2016 tally, representing the eighth straight month in which the count has risen (OGJ Online, Jan. 9, 2017).

The average US rig count for January was 683, up 49 month-over-month and up 29 year-over-year. The average Canadian rig count for January was 302, up 93 month-over-month and up 110 year-over-year.

Activity beyond North America included a 6-unit month-over-month rise during January in the Middle East, where several major oil producing nations are subject to the agreement within the Organization of Petroleum Exporting Countries as well as with certain non-OPEC producing nations to collectively limit output.

At 382 rigs working, the Middle East’s count is down 25 units year-over-year. The month-over-month increase was propelled by Kuwait, which jumped 8 units month-over-month to 52, up 12 year-over-year. Saudi Arabia, meanwhile, dropped a unit month-over-month to 124, even with its year-ago count.

Content Dam Ogj Online Articles 2017 02 Jan 2017 Bhi Global Rig Count

Oman, the largest non-OPEC producer in the Middle East but part of the output curtailment deal, declined 2 units month-over-month to 57, down 13 year-over-year.

The Asia-Pacific region also gained 6 units during January, averaging 198, up 5 year-over-year. Indonesia climbed 7 units month-over-month to 23, up 3 year-over-year. Australia rose 5 units month-over-month to 14, up 1 year-over-year. Brunei Darussalam gained back its only 2 active units, which is even with its year-ago count. Offshore China, meanwhile, fell 5 units month-over-month to 20, down 7 year-over-year.

Africa edged up a unit month-over-month in January to 79, down 15 year-over-year. Nigeria gained 2 units month-over-month to 6, down 3 year-over-year. Angola added a unit month-over-month to average 5, half its year-ago count. Algeria dropped a unit month-over-month to 51, even with its year-ago total. Ghana lost its only active unit during January.

Europe edged down a unit month-over-month to 98, down 10 year-over-year. Norway lost 4 units month-over-month to 12, down 6 year-over-year. Offshore UK decreased 3 units month-over-month to 8, even with its year-ago count. France during the month added its only 2 active units, running multiple rigs for the first time since March 2015. Turkey increased 3 units month-over-month to 32, up 3 year-over-year.

Latin America declined 8 units month-over-month to 176, down 67 year-over-year. Argentina anchored the month-over-month loss with a 7-unit drop to 52, down 20 year-over-year. Mexico fell 3 units month-over-month to 16, down 27 year-over-year. Chile during the month halved to 2, down 1 year-over-year.

Trinidad and Tobago gained 2 units month-over-month to 5, down 2 year-over-year. Brazil rose 3 units for the second consecutive month to 16, down 18 year-over-year.

Contact Matt Zborowski at matthewz@ogjonline.com.

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