Steel Markets
Active Oil & Gas Rigs in late-November
Written by Brett Linton
November 26, 2014
With crude oil prices breaking through $80 per barrel, all eyes are on the Baker Hughes rig count data. The question is will the lower oil prices affect the number of wells being drilled? Most assume there will be an impact, however, it could have a lag effect and take time before there is a substantial change in the numbers. Steel Market Update will be watching the numbers closely since a reduction in drilling rigs would have a significant impact on steel usage – especially for hot rolled coil and plate used to make line pipe and other drilling, storage and transportation equipment.
According to Baker Hughes data from November 26th 2014, the U.S rig count for this week is 1,917 rigs exploring for or developing oil or natural gas. This count represents a decrease of 12 rigs compared to last week, with oil rigs down 2 to 1,572 rigs, gas rigs down 11 to 344 rigs, and miscellaneous rigs up 1 to 1 rig. Compared to last year the 1,917 count is an increase of 154 rigs, with oil rigs up by 181, gas rigs down by 23, and miscellaneous rigs down by 4.
The Canadian rig count increased by 4 to 438 rigs this week, with oil rigs down 14 to 229 rigs and gas rigs up 18 to 209 rigs. Compared to last year the 438 count is an increase of 53 rigs, with oil rigs up by 14 and gas rigs up by 39. International rigs decreased by 15 to 1,308 rigs for the month of October, a decrease of 7 rigs from the same month one year ago. For a history of both the US and Canadian rig count click here.
About the Rotary Rig Count
A rotary rig is one that rotates the drill pipe from the surface to either drill a new well or sidetracking an existing one. They are drilled to explore for, develop and produce oil or natural gas. The Baker Hughes Rotary Rig count includes only those rigs that are significant consumers of oilfield services and supplies.
The Baker Hughes North American Rotary Rig Count is a weekly census of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States and Canada. Rigs considered active must be on location and drilling. They are considered active from the time they break ground until the time they reach their target depth.
The Baker Hughes International Rotary Rig Count is a monthly census of active drilling rigs exploring for or developing oil or natural gas outside of the United States and Canada. International rigs considered active must be drilling at least 15 days during the month. The Baker Hughes International Rotary Rig Count does not include rigs drilling in Russia or onshore China.
Brett Linton
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