North America Rig Count Falls 10 Week-Over-Week, Baker Hughes Data Shows
North America’s rig count fell for the first time in months, dropping 10 rigs week-over-week to 760, Rigzone reports, citing Baker Hughes’ latest North America rotary rig count published July 10. The U.S. count actually ticked up by one to 581 rigs, but Canada dropped 11 to 179, dragging down the continental total. The Permian Basin lost five rigs week-over-week, while New Mexico shed four and Texas added one. Louisiana gained three rigs and the Eagle Ford added three, per the count. In Canada, the oil rig count dropped by 12 while gas rigs fell by one. Baker Hughes noted this marks the first weekly decline since May, breaking a run that included eight straight weeks of gains earlier in the year. Despite the pullback, North America’s total is still up 61 rigs year-over-year, with the U.S. adding 44 rigs and Canada adding 17 over that span.
What It Means for Subcontractors
- Permian-focused service companies, especially those in completions, trucking, and workforce housing, should note the five-rig drop in the basin and four-rig decline in New Mexico as an early signal of softening demand in the region’s core shale plays.
- Canadian oilfield service subs, particularly those tied to oil-directed drilling, face a sharper near-term pullback than their U.S. counterparts given Canada’s 12-rig drop in oil rigs alone, worth watching against seasonal breakup patterns.
- Eagle Ford and DJ-Niobrara contractors saw counterintuitive gains (three and one rigs, respectively) even as the broader count fell, suggesting subs should track basin-level data rather than assume a uniform slowdown when bidding new work.
