Environment and Energy
U.S. Drill Rig Counts Flat Last Week, Canadian Rigs Down
Written by Brett Linton
March 4, 2022
The number of active oil and gas drill rigs in the U.S. and Canada was flat or fell this week after gains in prior weeks, according to recent data released by oilfield services company Baker Hughes. The active drill rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand.
The number of active U.S. rigs was flat at 650 rigs, with oil rigs down 3 and gas rigs up 3. Compared to this time last year, this week’s count is up 247 rigs, with oil rigs up 209 and gas rigs up 38. See the first graph below for a history of active U.S. rig counts.
The Canadian rig count decreased by 7 to 217 rigs, with oil rigs down 4 and gas rigs down 3. This week’s count is up 76 rigs compared to levels one year ago, with oil rigs up 54, gas rigs up 21, and miscellaneous rigs up 1. See the second graph below for a history of active Canadian rig counts.
International rigs decreased by 28 to 813 rigs for the month of February, an increase of 112 rigs from the same month one year ago. For a history of both the U.S. and Canadian rig count, visit the Rig Count page on the Steel Market Update website here.
For more in-depth information on the energy market, Steel Market Update publishes an “Energy Update” report each month covering oil and natural gas prices, detailed rig count data, and oil stock levels. Our most recent report was published on Feb. 10 for Premium members.
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 sidetracks 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 for at least 15 days of the month. The Baker Hughes International Rotary Rig Count does not include rigs drilling in Russia or onshore China.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
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