Environment and Energy
Gas & Oil Rig Counts Increase in U.S., Down in Canada
Written by Brett Linton
March 19, 2021
The number of active U.S. rotary drill rigs increased this past week, while the Canadian rig count declined, according to data released by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods demand.
The number of active U.S. rigs rose by 9 to 411 rigs, with oil rigs up 9, gas rigs unchanged, and miscellaneous rigs unchanged. Compared to this time last year, this week’s count is down 361 rigs, with oil rigs down 346, gas rigs down 14, and miscellaneous rigs down 1. See the first graph below for a history of active U.S. rig counts.
The Canadian rig count fell by 24 to 92 rigs, with oil rigs down 17, gas rigs down 7, and miscellaneous rigs unchanged. Compared to last year, this week’s count is down 6 rigs, with oil rigs down 11, gas rigs up 5, and miscellaneous rigs unchanged. See the second graph below for a history of active Canadian rig counts.
International rigs increased by 24 to 701 rigs for the month of February, a decrease of 384 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.
For more in-depth information on the energy market, Steel Market Update publishes a report each month covering oil and natural gas prices, detailed rig count data, and oil stock levels for our Premium members. The most recent report is available to Premium members 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.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
Read more from Brett LintonLatest in Environment and Energy
November energy market update
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.
SMU Spotlight: CRU’s Paul Butterworth talks EAFs, CBAM, and decarbonization
Last month I traveled to Sweden to the CRU Steel Decarbonisation Summit in Stockholm. I wanted to see if the European take on decarbonization was broadly different from what we are talking about here in the US.
SSAB OK’d for $139M from European Commission for decarb
Sweden’s SSAB has been awarded €128 million by the European Commission for the steelmaker’s efforts at decarbonization.
GSCC introduces label for new emissions target
The Global Steel Climate Council (GSCC) has taken a step forward in standardizing the decarbonization process with the publishing of its labeling for a certified science-based emissions target.
DOE set to measure GHG intensity of industrial products, including steel
The US Department of Energy (DOE) is launching a pilot project to measure the greenhouse gas (GHG) intensity of certain energy-intensive industrial products, including steel.