Environment and Energy
Rig Count Sees Small Decline
Written by Brett Linton
January 5, 2018
The weekly U.S. rig count, an indicator of oil country tubular goods demand, decreased this week, according to Jan. 5 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs declined by 5 to 924 rigs, with oil rigs down 5 to 742 rigs, gas rigs unchanged at 182 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to this time last year, the 924 count is up 259 rigs, with oil rigs up 213, gas rigs up 47, and miscellaneous rigs down 1. See the first graph below for a history of active U.S. rig counts.
The Canadian rig count increased by 38 to 174 rigs this past week, with oil rigs up 36 to 98 rigs, gas rigs up 2 to 76 rigs, and miscellaneous rigs unchanged at 0. Compared to last year, the 174 count is down 31 rigs, with oil rigs up 17, gas rigs down 47, and miscellaneous rigs down 1. See the second graph below for a history of active Canadian rig counts.
International rigs decreased by 9 to 942 rigs for the month of November, an increase of 17 rigs from the same month one year ago. For a history of both the U.S. and Canadian rig count, visit the Rig Count page on the Steel Market Update website 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 sidetrack 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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In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and rig counts are an advance indicator of demand for oil country tubular goods (OCTG), line pipe and other steel products.
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