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    Analysis

    US and Canadian Rig Counts Tumbling

    Written by Brett Linton


    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.

    Brett Linton

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