Steel Markets
US and Canada Rig Counts Continue to Fall
Written by Brett Linton
February 27, 2015
According to Baker Hughes data from February 27th, 2015, the U.S rig count for this week is 1,267 rigs exploring for or developing oil or natural gas. The count is down 43 rigs when compared to last week, with oil rigs down 33 to 986 rigs, gas rigs down 9 to 280 rigs, and miscellaneous rigs down 1 to 1 rig. Compared to last year the 1,267 count is a decrease of 502 rigs, with oil rigs down by 444, gas rigs down by 55, and miscellaneous rigs down by 3.
The decline in the drilling of new gas and oil wells is having a direct impact on the amount of line pipe, storage tanks and OCTG that is being used by the energy sector. A good portion of these products come from hot rolled coil or plate substrate.
The Canadian rig count decreased by 30 to 330 rigs this week, with oil rigs down 13 to 171 rigs and gas rigs down 17 to 159 rigs. Compared to last year the 330 count is a decrease of 252 rigs, with oil rigs down by 252 and gas rigs down by 44. International rigs decreased by 55 to 1,258 rigs for the month of January, a decrease of 67 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.
Brett Linton
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The first rule of Steel 101 is that you’re free to talk about Steel 101. We actually encourage it. Last week on Tuesday and Wednesday, SMU’s Steel 101 was held in Mt. Pleasant, S.C.
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