North American rig count declines in March

The average North American rig count of 516 for March marked a decline from the previous month, dragged lower by reduced activity in Canada, Baker Hughes reported April 1.

The oilfield services company reported the average US rig count last month was 408. That represents an increase of 10 from the previous month, but 364 less than the average for March 2020.

In Canada, the average count for March was 108, 62 less than in April and 25 less year-on-year. Most of the rig activity in Canada last month was in natural gas plays. By province, oil-rich Alberta had the most rigs in service.

About three quarters of the US rigs in March were deployed for oil. By state, Texas had the most rig activity last month, with most of that focused in the Permian shale.

Year-on-year comparisons are skewed because of the pandemic. There was a significant decline in exploration and production last year because of weak oil and gas prices. Well on its way to record lows, Brent  traded at $24.74/barrel on this date in 2020. The benchmark was closer to $64/b early today.