U.S. Drops Two Natural Gas Rigs as Marcellus Activity Slows

By Jeremiah Shelor

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Published in: Daily Gas Price Index Filed under:

The U.S. natural gas rig count fell two units to 98 for the week ending Friday (June 7) amid a slowdown in Marcellus Shale drilling, updated figures from Baker Hughes Co. (BKR) show.

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Including a four-rig decrease in the U.S. oil patch, the combined domestic rig count dropped to 594 for the period, down six rigs week/week and down 101 rigs from year-earlier levels, according to the BKR numbers, which are based partly on data from Enverus.

Total vertical rigs were unchanged week/week in the United States; horizontal rigs declined by five, alongside a net decrease of one directional unit.

The Canadian rig count, meanwhile, jumped 15 units higher to finish the period at 143. The entirety of the net increase came from oil-directed drilling; total Canadian natural gas rigs held flat week/week at 54. At this time a year ago, Canada had 136 active rigs overall, according to BKR.

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Among plays, the gassy Marcellus saw the largest weekly net decline, dropping two rigs to finish with 25. That’s down from 39 rigs running in the year-ago period. Elsewhere, the Ardmore Woodford dropped one rig to finish with six, flat year/year.

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Counting by state, Oklahoma dropped four rigs to finish the week with 38, versus 44 a year ago. Louisiana, Pennsylvania and West Virginia dropped one rig apiece, while one rig was added in California, the BKR data show.

In its own weekly rig count, Enverus tallied 657 combined U.S. rigs for the week ending May 31, including 627 land rigs.

Total natural gas-directed domestic land rigs finished the week at 97, up two week/week but down 47% year/year, according to the firm.

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Jeremiah Shelor

Jeremiah Shelor joined NGI in 2015 after covering business and politics for The Exponent Telegram in Clarksburg, WV. He holds a Master of Fine Arts in Literary Nonfiction from West Virginia University and a Bachelor of Arts in English from Virginia Tech.