Features

US rig counts decline further, increase in Canada
Written by Brett Linton
January 24, 2025
The number of active oil and gas rigs drilling in the US continued to decline last week, according to Baker Hughes, remaining at a multi-year low. Meanwhile, Canadian drilling activity marched to the beat of a different drum, rising to a near-two-year high this week.
The current US rig count is 576 rigs, marking the lowest weekly rate recorded since December 2021. US drilling activity has been at a reduced level since last June.
Canadian activity continues to rebound following the seasonal slowdown seen in late December and early January. Historically, Canadian counts often surge through February, then decline as warmer weather and thawing ground conditions limit access to drill sites and roads. The last week to see a higher Canadian count was back in March 2023.

The international rig count, updated monthly, decreased to 909 in December. This is down 10 rigs from 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

Final Thoughts
Who could’ve guessed that the first stage to follow liberation would be confusion. Well, when things get this liberated this fast, perhaps it’s to be expected. From the 30,000-foot view, “Liberation Day” didn’t have a significant impact on steel tariff-wise. That is, the Section 232 steel and aluminum tariffs stand alone from the reciprocal tariffs […]

Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.

Steel, recycling trade groups differ in ‘Liberation Day’ reactions
US steel trade groups representing mills had a far more positive reaction to President Trump’s “Liberation Day” than the leading recycled metals association.

Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.

SMU Survey: Steel mill lead times show diverging trends
Buyers responding to our latest market survey reported that sheet lead times continue to gradually decline from recent highs. Meanwhile, plate lead times increased to levels last seen one year ago.