North American Rig Count Drops; Jones Act Waiver Extended

North America's streak of weekly rig additions has ended, with the total count falling by three, according to the latest data from Baker Hughes reported by Rigzone. The dip follows a period of consistent growth in active drilling rigs across the continent.

In a separate policy move, President Donald Trump has extended a waiver of the Jones Act for 90 days, Rigzone reported. The century-old law requires shipping between U.S. ports to be conducted by American-built, -crewed, and -flagged vessels. The extension includes new, unspecified limits, narrowing the scope of the waiver. For Bakken producers, Jones Act waivers can influence the economics of moving crude oil from the Gulf Coast to other domestic markets, such as the East Coast.

Meanwhile, the first crude oil cargo from the Pikka development on Alaska's North Slope has been loaded by operator Santos and is destined for a West Coast refinery, according to Rigzone. The startup of new production from Alaska introduces another source of domestic crude supply into the U.S. market.

The midday developments present a mixed backdrop for the Bakken formation. The decline in the North American rig count, a key indicator of future production activity, will be watched closely by operators in the Williston Basin for signs of a broader activity shift. The modified Jones Act waiver extension maintains some flexibility for domestic maritime logistics, which can affect the flow of Bakken and other U.S. crudes. The arrival of new oil from Alaska's Pikka project adds to overall U.S. supply, potentially influencing benchmark prices that Bakken crude is priced against.