Rig Count Picture Differs in U.S., Canada

The U.S. rig count, an indicator of oil country tubular goods demand, was down for the week, but is up 23 percent year over year, according to Feb. 2 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs fell by 1 to 946 rigs, with oil rigs up 6 to 765 rigs, gas rigs down 7 to 181 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to this time last year, the 946 count is up 217 rigs, with oil rigs up 182, gas rigs up 36, and miscellaneous rigs down 1. See the first graph below for a history of active U.S. rig counts.

The Canadian rig count continues to recover from its seasonal slump, climbing by 4 to 342 rigs this past week, with oil rigs up 14 to 234 rigs, gas rigs down 10 to 108 rigs, and miscellaneous rigs unchanged at 0. Compared to last year, the 342 count is down by 1 rig, with oil rigs up 37, gas rigs down 38, and miscellaneous rigs unchanged. Canada has about the same number of active rigs as it did this time last year, as opposed to the U.S. and international markets which have seen drilling activity improve significantly since February 2017. See the second graph below for a history of active Canadian rig counts.