Environment and Energy
Rig Counts Fall in US and Canada
Written by Becca Moczygemba
July 21, 2023
The active rig count in the US and Canada dropped in both countries, according to the latest data from oilfield services company Baker Hughes.
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
Becca Moczygemba
Read more from Becca MoczygembaLatest in Environment and Energy
AISI cheers passage of water resources bill in Congress
The American Iron and Steel Institute (AISI) lauded the recent passage of a water resources bill in Congress.
Solar power to supply Hybar’s Arkansas rebar mill
Green & Clean Power will supply electricity to Hybar’s mill that is due to begin operations next summer.
SMA sends pro-steel policy plan to Trump administration
“We are under constant threat from nonmarket economies who evade our trade laws," SMA said.
November energy market update
In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and rig counts are an advance indicator of demand for oil country tubular goods (OCTG), line pipe and other steel products.
SMU Spotlight: CRU’s Paul Butterworth talks EAFs, CBAM, and decarbonization
Last month I traveled to Sweden to the CRU Steel Decarbonisation Summit in Stockholm. I wanted to see if the European take on decarbonization was broadly different from what we are talking about here in the US.