July 11, 2024

The total annual rig count dropped from a high of 250 in 2012 to just 59 in 2016. The rig count recovered slightly in 2017 and 2018 before reaching a low of 44 in the 2020 pandemic year. It has since recovered to 130 rigs in Q1 2024.

Horizontal drilling has been the primary focus as it results in higher well productivity and recoverable oil per well. After averaging about 85% of the total rig count from 2012 through 2020, horizonal drilling has averaged 95% since 2021.

The vertical rig count has declined from about 20% of the total in 2012 to just 2% in 2022. There has been a slight improvement in Q1 2024.

Note: Some vertical production wells could still be drilled in some areas. These vertical wells will have lower F&D cost per unit of production ($/Bbl) than horizontals wells, which could potentially be drilled at the same location.

Source: Baker Huges North America Rig Count, 2024