Analysis
November 26, 2014
Active Oil & Gas Rigs in late-November
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 26th 2014, the U.S rig count for this week is 1,917 rigs exploring for or developing oil or natural gas. This count represents a decrease of 12 rigs compared to last week, with oil rigs down 2 to 1,572 rigs, gas rigs down 11 to 344 rigs, and miscellaneous rigs up 1 to 1 rig. Compared to last year the 1,917 count is an increase of 154 rigs, with oil rigs up by 181, gas rigs down by 23, and miscellaneous rigs down by 4.
