Baker Hughes (NYSE: BKR) announced today that the Baker Hughes worldwide rig count for April 2020 was1,514 down 450 from 1,964 recorded in March, and down 626 from the 2,140 recorded in April 2019.
The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.
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The average U.S. rig count for April 2020 was 566, down 206 from the 772 counted in March 2020, and down 446 from the 1,012 counted in April 2019. The average Canadian rig count for April 2020 was 33, down 100 from the 133 counted in March 2020, and down 33 from the 66 counted in April 2019.
The Baker Hughes international rig count for April 2020 was 915 down 144 from the 1,059 counted in March 2020, and down 147 from the 1,062 counted in April 2019. The international offshore rig count for April 2020 was 228, down 16 from the 244 counted in March 2020, and down 23 from the 251 counted in April 2019.
The international rig count covers all continents and/or regions except for North America which is made up of The United States and Canada.
The Africa rig count for April 2020 was 103, down 5 from the 108 counted in March 2020, and down 23 from the 126 counted in April 2019. Of the 103 rigs counted, 83 are Land rigs and 20 are offshore rigs.
The Asia Pacific rig count for April 2020 was 191, down 40 from the 231 counted in March 2020, and down 45 from the 236 counted in April 2019. Of the 191 rigs counted, 95 are Land rigs and 96 are offshore rigs.
The Europe count for April 2020 was 112, down 11 from the 123 counted in March 2020, and up 14 from the 98 counted in April 2019. Of the 112 rigs counted, 89 are Land rigs and 23 are offshore rigs.
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The Latin America count for April 2020 was 89, down 80 from the 169 counted in March 2020, and down 101 from the 190 counted in April 2019. Of the 89 rigs counted, 53 are Land rigs and 36 are offshore rigs.
The Middle East count for April 2020 was 420, down 8 from the 428 counted in March 2020, and up 8 from the 356 counted in April 2019. Of the 420 rigs counted, 367 are Land rigs and 53 are offshore rigs.
There has been tremendous pressure on Oil and Gas Industry, following the collapse in global demand due to Coronavirus lockdown coupled with an oil-price war between Russia and Saudi Arabia.
In March alone, the oil and gas industry shed around 51,000 drilling and refining jobs, and the situation is likely to get worse in April as oil futures prices plunged to historic lows. Now coupled with dropping rig counts, the size of the workforce in the oil servicing sector will likely suffer more cuts, as rigs go from operations to stacking position.
Media reports out of Nigeria show that ExxonMobil has notified one of its drilling contractors; Borr Drilling of the early termination of the contracts for the jack-up rigs Gerd and Groa operating in Nigeria offshore. The rigs were under contracts originally committed until April 2021 and May 2021, respectively.