Features
US rig counts fall to 2.5-year low, Canadian activity picks up
Written by Brett Linton
January 17, 2025
Active drilling rig activity in the US declined to a multi-year low this week, while Canadian counts marched higher, according to the latest data from Baker Hughes.
The latest US count of 580 rigs is the lowest weekly rate recorded since December 2021. US drilling activity has remained in this low ballpark since last June.
Canadian activity continues to rebound following the seasonal downturn seen at the turn of the calendar year. Canadian counts typically strengthen through February, then decline as warmer weather approaches and thawing ground conditions limit access to roads and drill sites.
The international rig count (updated monthly rather than weekly) decreased to 909 in December. This is 10 rigs fewer than the November count and 46 fewer than the same month 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.
Brett Linton
Read more from Brett LintonLatest in Features
CRU: Core Natural Resources created in the US
Coal miners Consol Energy and Arch Resources have completed what they describe as a merger of equals to form Core Natural Resources. Headquartered in Canonsburg, Pa., the new company has the potential to produce 12 million metric tons (mt) per year of metallurgical coal and more than 25 million mt per year of thermal coal, as […]
Final Thoughts
Next Monday marks the start of the second Trump administration. The limbo we’ve been living in since Election Day in early November will finally come to an end. What better way to take a look at what’s coming up in Washington, D.C., than a conversation with Steel Manufacturers Association (SMA) President Philip K. Bell. He […]
Steel market chatter this week
On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to imports and evolving market events.
Final Thoughts
It’s another week of big headlines and ho-hum pricing moves – which is to say the start of 2025 is looking a lot like the end of 2024. Scrap has settled up $20 per gross ton (gt). Steel prices, however, were a soft sideways this week. Chalk it up to uneven demand and abundant supply. And while we’re not aware of any major outages, some of you tell us that you’ve lost some shipping days here and there because of the recent cold snap.