Rig Counts Down in US for Seventh Week

Oil rigs in the US dropped by eight to 512, while gas rigs decreased by two for a total of 115. Miscellaneous rigs were unchanged at five in the same comparison.

Compared to the same period one year ago, active rigs are down by 133. There are 93 fewer oil rigs and 43 fewer gas rigs from a year earlier, Baker Hughes said. However, miscellaneous rigs are up by three.

Active rigs in Canada are up by one to 190.

Canadian oil rigs are down by three to 116, but gas rigs are up by four to 74.

Working rigs in Canada are down by 11 from the same period one year ago. There are 20 fewer oil rigs, but nine more gas rigs.

The international rig count is down by six from June to 961 rigs in July, but is up by 128 rigs from July 2022, 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.