HOUSTON, Aug. 7 (UPI) — While down year-on-year, oil services company Baker Hughes said Friday there were a net five more rigs deployed across the United States in July than in June.
Baker Hughes reported net rig counts for July. Rig counts serve as a barometer for the health of the exploration and production side of the energy sector, which has been depressed because of the low price of crude oil.
Crude oil prices are down more than 50 percent from last year because of oversupplies in a weak global economy. Much of the increase in supply comes from U.S. shale oil basins.
Companies operating in U.S. shale have said they’re able to produce more with fewer rigs because of the improved efficiencies. Others have started adding more rigs. Despite posting a loss for the second quarter, Pioneer Natural Resources was among those adding more rigs, saying this week it would increase its capital budget for its operations focused in Texas.
Baker Hughes reported a July rig count in the United States at 866, up five from the previous month. The trend spilled across the border to Canada, which added 54 more rigs from June to reach 183. Year-on-year, the rig counts are down more than 1,000 for the United States and 167 for Canada.
Baker Hughes itself is impacted by year-on-year declines in the exploration and production sector. The company last month said the weak market for crude oil was expected to hurt all segments of business operations for the rest of the year.
Baker Hughes is the target of a takeover bid from rival Halliburton. In July, Halliburton reported a 26 percent decline in revenues to $5.9 billion, with North American revenues alone down 39 percent to $2.7 billion.
Internationally, Baker Hughes recorded 28 fewer rigs deployed in July to 1,118.
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