Features

Active rig counts tick higher in US and Canada

January 31, 2025

The number of active drill rigs operating in the US and Canada increased this week, according to Baker Hughes. Although up, the US count remains near a multi-year low, while drilling activity in Canada climbed to one of the highest levels recorded in almost seven years.

The current US rig count is 582 rigs, up by six compared to the previous week (the lowest weekly rate recorded since December 2021). US drilling activity has remained at reduced levels since June 2024.

Canadian activity continues to rebound following the typical seasonal slowdown. This week’s count of 258 marks the highest rate since March 2018. Historically, Canadian counts often surge through February, then decline as warmer weather and thawing ground conditions limit access to drill sites and roads.

The international rig count, updated monthly, decreased to 909 in December. This wa 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

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.