North America’s oil and gas sector saw a small bump in activity last week, but it wasn’t thanks to the U.S. — Canada stole the spotlight, boosting its rig count while the U.S. slipped further behind.

According to new figures from Baker Hughes, the continent added 9 rigs, bringing the total to 699. Canada led the charge with 11 new rigs, while the U.S. trimmed its count by 2 — signaling a continued slowdown in American drilling.

U.S. Rig Activity Losing Steam

The U.S. now operates 537 rigs, mostly onshore, but saw slight drops in oil-focused rigs and directional drilling. Horizontal rigs also dipped, while vertical rigs showed a modest rise. In the states, Texas and Oklahoma each removed a rig, and key basins like Cana Woodford and Ardmore Woodford also saw cuts. Only Haynesville Basin saw an increase.

Canada Ramps Up Operations

Canada’s energy sector is heating up, adding 10 oil rigs and 1 gas rig, pushing its total to 162. This uptick shows stronger momentum as drilling activity intensifies heading into the second half of the year.

Still Behind Last Year

Despite this short-term growth, North America is still playing catch-up. The region’s rig count is down 74 compared to this time last year — with the U.S. accounting for 47 fewer rigs, and Canada losing 27 over the same period.

Experts Warn of More U.S. Declines

J.P. Morgan analysts say the U.S. rig count has now fallen to its lowest point since September 2021, and expect another drop this July — particularly across key shale oil regions. They note that U.S. output growth is already slowing, falling below 200,000 barrels per day in May and June.

The decline is linked to fewer active rigs and setbacks in the Gulf of Mexico.

The Bigger Picture

U.S. producers are scaling back, likely due to economic pressure and shifting market conditions.

Canada is filling the gap, offering some relief to the region’s overall numbers.

With drilling slowing down, global supply could tighten, potentially affecting oil prices and energy-related jobs.