Rig Counts Drop in US and Canada

When compared to the same time last year, there are 105 fewer rigs in the US. Gas rigs are down 33, oil rigs are down 73, and miscellaneous rigs are up one from last year.

The number of rigs in Canada decreased by five from last week to 188 for the week ending August 4. Oil rigs decreased by three, totaling 118, and gas rigs dropped by two to 70.

The number of oil rigs in Canada is down by 22 compared to a year ago, while the number of gas rigs is up by 7.

The international rig count is down by six from June to 961 rigs in July, but is up by 128 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.