Environment and Energy
Active Rig Counts: US Gains 13, Canada Loses 2
Written by Brett Linton
June 24, 2022
The number of total active drilling rigs in the US increased again this week, while Canadian rigs decreased after multiple weekly increases, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand.
The number of active US rigs rose by 13 to 753 rigs, with oil rigs up 10, gas rigs up 3, and miscellaneous rigs unchanged from last week. Compared to this time last year, this week’s count is up 283 rigs, with oil rigs up 222, gas rigs up 59, and and miscellaneous rigs up two. See Figure 1 for a history of active US rig counts.
The Canadian rig count declined by two to 154 rigs, with oil rigs unchanged and gas rigs down two. This week’s count is up 28 rigs compared to levels one year ago, with oil rigs up 22 and gas rigs up six. See Figure 2 for a history of active Canadian rig counts.
International rigs increased by 11 to 817 rigs for the month of May and are up 67 rigs from the same month one year ago. For a history of both the US 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. Our next report will be published next week for our Premium members.
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 to 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 for at least 15 days of the month. The Baker Hughes International Rotary Rig Count does not include rigs drilling in Russia or onshore in China.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
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