November 19, 2024

The chart illustrates rig counts in key oil-producing regions, serving as a leading indicator of expected oil production. In Saudi Arabia, rig counts have fluctuated significantly, reflecting adjustments to align with production quotas and market dynamics. Meanwhile, the UAE has exhibited stable rig activity, indicative of steady exploration and production strategies. China’s offshore rig counts have remained consistent over the observed period, suggesting sustained investment in offshore oil production. In contrast, Norway and the UK show modest and sporadic variations in rig counts, reflecting their more mature oil basins and project-specific activities.

Overall, most regions demonstrate relatively flat trends, with no significant surges in rig counts, which could indicate cautious investment in exploration amid evolving global energy dynamics.

Next chart displays oil rig counts in the US and Canada, both of which serve as key indicators of expected oil production. In the US, the rig count shows a sharp decline in early 2020, coinciding with the onset of the COVID-19 pandemic. However, since mid-2020, the rig count has gradually recovered, reflecting increased activity as market conditions improved. Despite this recovery, current levels remain below pre-pandemic highs.

In Canada, the rig count demonstrates more seasonal fluctuations, with significant drops in spring and summer months, likely due to weather-related factors. Like the US, Canada’s rig count also fell sharply in 2020, followed by a partial recovery, though it remains below historical levels.

Source: Baker Hughes

Some countries, including Russia, don’t provide comprehensive periodic report of rig count