Environment and Energy
Active Drilling Rig Update: US Count Highest Since March 2020
Written by Brett Linton
July 24, 2022
The number of total active drilling rigs in the US and Canada increased this week, 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 two to 758 rigs, with oil rigs unchanged, gas rigs up two, and miscellaneous rigs unchanged from last week. This is the highest total US count since March 20, 2020. Compared to this time last year, this week’s US count is up 267 rigs, with oil rigs up 212, gas rigs up 51, and miscellaneous rigs up four. See Figure 1 for a history of active US rig counts.
The Canadian rig count rose by four to 195 rigs, with oil rigs down one and gas rigs up five. This week’s count is up 46 rigs compared to levels one year ago, with oil rigs up 31, gas rigs up 16, and miscellaneous rigs down one. See Figure 2 for a history of active Canadian rig counts.
International rigs increased by seven to 824 rigs for the month of June and are up 66 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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