U.S. Sheds Two Natural Gas Rigs as Drilling Activity Declines

By Chris Newman

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Published in: Daily Gas Price Index Filed under:

The U.S. natural gas rig count fell by two units to 95 for the week ending Friday (Aug. 30), according to data from Enverus and Baker Hughes Co. (BKR).

U.S. Oil & Gas Drilling Rig Summary

The domestic active gas rig count represented a decline of 19 units, or 17%, from the year-earlier count of 114. Together with oil rigs that went unchanged in the week, the overall domestic rig count was down by two units at 583 week/week, according to the latest numbers.

Land drilling shed three units to finish the week at 563. That was partially offset by an additional rig in inland waters. Meanwhile, the Gulf of Mexico count was flat. By type, one directional rig came online and three horizontal units exited during the week.

Despite consistent declines in U.S. gas drilling, efficiency gains have steadied output. The U.S. Energy Information Administration on Friday said June dry natural gas production at 3,090 Bcf was down 0.2% from a year earlier. Still, the agency noted that June was the second highest month for gas production since it began tracking dry gas output in 1971.

In Canada, the rig count rose by one unit week/week to finish at 220, up from 187 a year earlier. An additional gas rig accounted for the increase as the oil-directed rig count was unchanged. Compared with a year earlier, oil rigs were up by 38 units, while gas rigs were down by five.

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Canada Drilling Rig Count

Looking at Lower 48 plays, the Cana Woodford formation and Eagle Ford Shale added one rig apiece to put them at 19 and 48 units, respectively. Meanwhile, the Denver-Julesberg/Niobrara formation, Haynesville Shale and Permian Basin each shed one rig. The Marcellus Shale posted a two-rig decline.

U.S. Unconventional Production Basins Drilling Rig Count

By state, Pennsylvania recorded three fewer rigs week/week. Colorado and New Mexico shed one rig each. Meanwhile, Louisiana, Oklahoma and West Virginia added one rig apiece.

Leading all states on year/year gains, California is up six units to eight rigs from a year earlier.

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Chris Newman

Chris Newman joined NGI in October 2023. He worked 18 years at Argus Media, starting in 2004 in Washington, D.C., where he covered U.S. thermal/coking coal markets and rail transportation. In 2014, he moved to Singapore to help lead Argus’ coverage of steel and its raw material feedstocks. A graduate of the University of Virginia, Chris returned to his native Virginia in 2021.