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.
The Canadian rig count increased by 32 to 434 rigs this week, with oil rigs up 27 to 243 rigs and gas rigs up 5 to 191 rigs. Compared to last year the 434 count is an increase of 66 rigs, with oil rigs up by 43 and gas rigs up by 23. International rigs decreased by 15 to 1,308 rigs for the month of October, a decrease of 7 rigs from the same month one year ago. For a history of both the US and Canadian rig count click here.
About the Rotary Rig Count
A rotary rig is one that rotates the drill pipe from the surface to either drill a new well or sidetracking an existing one. They are drilled to explore for, develop and produce oil or natural gas. The Baker Hughes Rotary Rig count includes only those rigs that are significant consumers of oilfield services and supplies.
The Baker Hughes North American Rotary Rig Count is a weekly census of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States and Canada. Rigs considered active must be on location and drilling. They are considered active from the time they break ground until the time they reach their target depth.
The Baker Hughes International Rotary Rig Count is a monthly census of active drilling rigs exploring for or developing oil or natural gas outside of the United States and Canada. International rigs considered active must be drilling at least 15 days during the month. The Baker Hughes International Rotary Rig Count does not include rigs drilling in Russia or onshore China.
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