The number of rigs actively exploring for or producing natural resources in the Middle East is rising, while other regions post declines, Baker Hughes showed Thursday.
Baker Hughes published April data on rig counts, a barometer used to gauge activity in the exploration and production, or upstream, side of the energy sector. Rig counts have shown a general decline as a suppressed market for crude oil leaves energy companies with less money to spend on exploration.
Data from the oil services company show the Middle East rig count trending in contrast to the rest of the world. The total number of rigs reported in the region in April was up by just three to 410, though more activity was seen onshore in the Middle East. The total year-on-year for the Middle East has remained relatively static.
In the United States, the rig count for April was down 134 from March and 859 year-on-year to 976, with nearly all of the focus on onshore basins. For Canada, the average rig count for April was 90, down from 204 last year. Only two rigs are actively exploring Canadian waters, compared to 33 offshore United States.
The drop off in North American rig counts added a layer of skepticism to the resiliency of the oil boom there. Several companies reporting first quarter financial data said drilling costs are going down while efficiency improves.
The U.S. Energy Information Administration said in a weekly status report total U.S. oil production of 9.37 million barrels per day represented a weekly drop of less than one half percent and 12 percent higher year-on-year.