Analysis
November 21, 2014
Weekly Data Shows Active Oil & Gas Rigs Stable
Written by Brett Linton
With crude oil prices breaking through $80 per barrel, all eyes are on the Baker Hughes rig count data. The question is will the lower oil prices affect the number of wells being drilled? Most assume there will be an impact, however, it could have a lag effect and take time before there is a substantial change in the numbers. Steel Market Update will be watching the numbers closely since a reduction in drilling rigs would have a significant impact on steel usage – especially for hot rolled coil and plate used to make line pipe and other drilling, storage and transportation equipment.
According to Baker Hughes data from November 21st 2014, the U.S rig count for this week is 1,929 rigs exploring for or developing oil or natural gas. This count represents an increase of 1 rig compared to last week, with oil rigs down 4 to 1,574 rigs, gas rigs up 5 to 355 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to last year the 1,929 count is an increase of 168 rigs, with oil rigs up by 187, gas rigs down by 14, and miscellaneous rigs down by 5.
