Environment and Energy
Active Gas & Oil Rig Count for mid-October
Written by Brett Linton
October 23, 2015
According to Baker Hughes data from October 23, 2015, the U.S rig count for the week was 787 rigs exploring for or developing oil or natural gas. This is unchanged overall compared to last week, with oil rigs down 1 to 594 rigs, gas rigs up 1 to 193 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to this time last year, the 787 count is down 1,140 rigs, with oil rigs down 1,001, gas rigs down 139, and miscellaneous rigs unchanged.
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 both the short lead times on hot rolled and plate at North American steel producers and the falling steel prices we have seen going back to mid-2014.
The situation in Canada started to show improvement over the last few months, but has recently flattened out and remains down over this time last year. The Canadian rig count increased by 9 to 190 rigs this past week, with oil rigs up 8 to 84 rigs and gas rigs up 1 to 106 rigs. Compared to last year the 190 count is a decrease of 236 rigs, with oil rigs down 148 and gas rigs down 88. International rigs increased by 3 to 1,140 rigs for the month of September, a decrease of 183 rigs from the same month one year ago. For a history of both the US and Canadian rig count, visit the Steel Market Update website 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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