Steel Markets
US and Canadian Rig Counts Tumbling
Written by Brett Linton
March 6, 2015
According to Baker Hughes data from March 6th, 2015, the U.S rig count for the week was 1,192 rigs exploring for or developing oil or natural gas. The rig count is down 75 rigs when compared to last week, with oil rigs down 64 to 922 rigs, gas rigs down 12 to 268 rigs, and miscellaneous rigs up 1 to 2 rigs. Compared to last year the 1,192 count is a decrease of 600 rigs, with oil rigs down by 521, gas rigs down by 77, and miscellaneous rigs down by 2.
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 and are reasons for the short lead times on hot rolled and plate at the U.S. and Canadian steel producers.
The situation in Canada is worse than the U.S. with total rigs down almost 50 percent compared to one year ago, The Canadian rig count decreased by 30 to 300 rigs this past week, with oil rigs down 21 to 150 rigs and gas rigs down 9 to 150 rigs. Compared to last year the 300 count is a decrease of 287 rigs, with oil rigs down by 239 and gas rigs down by 48. International rigs increased by 17 to 1,275 rigs for the month of February, a decrease of 66 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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