Features

Active rig count update: US down, Canada up

June 7, 2024

Oil and gas drilling activity in the US ticked down last week, remaining near a two-year low, according to the latest update from Baker Hughes. In contrast, the Canadian count inched higher and is now at a 10-week high.

US rig count

In the week ended June 7, the number of active drilling rigs in the US edged down six to a total of 594. Oil rigs declined by four to 492, gas rigs decreased by two to 98, and miscellaneous rigs were unchanged at four.

There were 101 fewer active US rigs compared to the same week last year. The number of active oil rigs is down by 64, gas rigs are down by 37, and miscellaneous rigs are unchanged.

Canada rig count

The number of rigs operating in Canada increased by 15 this week to 143. Oil rigs rose by 10 to 15, while gas rigs were unchanged at 54.

Active drilling levels in Canada are up by seven compared to this time last year, with oil rigs up by four and gas rigs up by three.

International rig count

The international rig count is updated monthly. The total number of active rigs for May fell to an eight-month low of 953, down by 25 from April and down by 12 from levels one year prior.

The Baker Hughes rig count is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG), a key end market for steel sheet. A rotary rig rotates the drill pipe from the surface to either drill a new well or sidetrack an existing one. For a history of the US and Canadian rig counts, visit the rig count page on our website.

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.