Rig Counts Fall in US and Canada

The total US rig count stood at 669 active rigs as of July 21, down six from the week prior. Active oil rigs in the US decreased by seven to 530, while active gas rigs dropped by two to 131, and miscellaneous rigs increased by eight vs. the previous week.

The US rig count is down by 89 rigs when compared to one year ago. Oil rigs are down by 69, gas rigs are down 24, and miscellaneous rigs up by four in the same comparison. 

Canada’s rig count remained flat at 187 for the week ended July 21 when compared with the previous week. Active oil rigs are up by two to 116, and gas rigs are down by two to 71 in the same comparison.

The Canadian rig count is off by eight from one year ago, with oil rigs declining by eight rigs, and gas rigs unchanged.

The international rig count is up by two to 967 rigs in June vs. May, and is up by 143 rigs compared with the same time period last year, Baker Hughes said.

The number of oil and gas rigs in operation is important to the steel industry as 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.

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