US Rig Count Falls, Canada Sees Boost

Oil rigs in the US remained stable at 525, but gas rigs fell by five to 123. Miscellaneous rigs were also unchanged at six.

Compared to the same period one year ago, active rigs are down by a total of 109. There are 76 fewer oil rigs and 37 fewer gas rigs, but miscellaneous rigs are up by four.

The increase in active rigs in Canada brings the total count to 190.

Oil rigs in Canada dipped by two to 116, but gas rigs were up by four to 74.

Year-over-year, working rigs in Canada are down by 11. Oil rigs are down by 21, but gas rigs are up by 10.

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.