Environment and Energy
Continued Recovery for U.S. and Canadian Rig Counts
Written by Brett Linton
July 6, 2021
Prompted by rising energy prices, the number of active oil and gas drill rigs increased again this past week for both the United States and Canada, 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 5 to 475 rigs, with oil rigs up 4, gas rigs up 1, and miscellaneous rigs unchanged. Compared to this time last year, this week’s count is up 212 rigs, with oil rigs up 191, gas rigs up 23, and miscellaneous rigs down 2. See the first graph below for a history of active U.S. rig counts.
The Canadian rig count rose by 10 to 136 rigs, with oil rigs up 5, gas rigs up 3, and miscellaneous rigs up 2. Compared to last year, this week’s count is up 118 rigs, with oil rigs up 81, gas rigs up 35, and miscellaneous rigs up 2. See the second graph below for a history of active Canadian rig counts.
International rigs increased by 8 to 758 rigs for the month of June, a decrease of 23 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 an ‘Energy Update’ 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 was published on June 10 and is available to Premium members here. We expect to publish our next Energy Update to Premium members in the coming days.
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
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