April 6 (UPI) -- North American drillers were sitting on the sidelines for much of March with oilfield services company Baker Hughes showing a net decline in exploration and production work for both the United States and Canada.
The company published its rig counts for March, showing net activity across North America declined. In the United States, the total decline for March was in natural gas work, with activity in the Marcellus shale basin performing the worst.
The U.S. Energy Information Administration includes both the Marcellus and Utica plays with the Appalachian basin because of geological overlaps. Production from February to March showed output was relatively stable at 35 billion cubic feet per day, showing it's the most prolific gas reservoir in the Lower 48 states.
Enverus, a Canadian company whose data backs the Baker Hughes rig count, said all but one region in the United States saw a decline in activity during the week ending April 5.
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"The Gulf Coast had the largest decline, losing nine to 98, followed by Anadarko dropping two to 74," its report read.
"The remaining regions lost one rig each. The Permian was the only major play to gain week-over-week, adding one rig for a total of 347."
The Permian basin is the largest inland oil producer by far, with 5.6 million barrels per day in average production representing around 45% of total U.S. production. The United States is among the largest oil and gas producers in the world, though year-on-year growth is down substantially from peaks during the mid-2000s.
For Canada, Baker Hughes shows the rig count declined by 100 and gas work dropped by seven, though activity is usually slow during the colder months because the ground may be frozen.
Baker Hughes does not break down Canadian rig counts by basin. Most of the exploration work in Canada is in Alberta and British Columbia. Canada is expecting something of a breakout year.
The Canadian Association of Petroleum Producers, the nation's oil and gas lobby, is expecting nearly $30 billion in new investments in exploration and production this year, up more than 80% from the worst of the COVID-19 pandemic.
"The year 2023 may be one of the most pivotal moments in time for Canada's oil and natural gas industry," said Lisa Baiton, CAPP's president and CEO.
Updated forecasts on North American production should come from reports next week from the likes of the U.S. Energy Information Administration and the Organization of the Petroleum Exporting Countries.
