Environment and Energy
Rig Counts Notch Fifth Straight Decline in US, Up in Canada
Written by Becca Moczygemba
June 2, 2023
Rig counts fell in the US for the fifth consecutive week, but increased in Canada for the week ended June 2 compared with a week earlier, according to the latest data from oilfield services company Baker Hughes.
The total US rig count stands at 696 active rigs as of June 2, down 15 from the previous week. The number of active oil rigs in the US dropped by 15 to 555 in the same comparison, while the amount of active gas rigs remained flat at 137. Miscellaneous rigs remained unchanged at four. When compared to this time last year, the US count is down by 31 rigs, with oil rigs down 19, gas rigs down 14, and miscellaneous rigs up two, respectively.
The number of active Canadian rigs is up by 10 to 97 rigs as of June 2 compared to the previous week. Active oil rigs in Canada were up to 51 compared to last week’s 42, and gas rigs increased to 46 from 45. Canada’s rig count dropped 20 rigs from last year’s count of 117, with oil rigs down 21, and gas rigs up one, respectively.
The international rig count increased by 18 to 965 rigs in May vs. April, and is up by 148 rigs compared with the same month last year.
The number of oil and gas rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG), a key end-market for steel sheet.
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. Wells 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.
Steel Market Update regularly publishes an in-depth “Energy Update” report covering oil and natural gas prices, detailed rig count data, and oil stock levels. That is available here for Premium members.
For a history of both the US and Canadian rig count, visit the Rig Count page on the Steel Market Update website here.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
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