Environment and Energy
Active Gas & Oil Rig Counts Show Positive Start to June
Written by Brett Linton
June 3, 2018
The U.S. rig count, an indicator of oil country tubular goods demand, rose this week, according to June 1 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 1 to 1,060 rigs, with oil rigs up 2 to 861 rigs, gas rigs down 1 to 197 rigs, and miscellaneous rigs unchanged at 2 rigs. Compared to this time last year, the 1,060 count is up 144 rigs, with oil rigs up 128, gas rigs up 15, and miscellaneous rigs up 1. See the first graph below for a history of active U.S. rig counts.
The Canadian rig count rose by 18 to 99 rigs, with oil rigs up 21 to 56 rigs, gas rigs down 3 to 43 rigs, and miscellaneous rigs unchanged at 0. Compared to last year, the 99 count is overall unchanged, with oil rigs up 5, gas rigs down 5, and miscellaneous rigs unchanged. See the second graph below for a history of active Canadian rig counts.
International rigs increased by 6 to 978 rigs for the month of April, an increase of 22 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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