The US and Canadian rig counts decreased slightly last week, but they remain sharply up compared to a year ago, according to data from oilfield services company Baker Hughes.
The total US rig count was 760 last week, down one from the week prior. The number of active oil rigs in the US slipped to 607 last week, down two from the prior week. The number of gas rigs increased by one to 151. Miscellaneous rigs were unchanged at two. Compared to this time last year, the US count is up 115 rigs, with oil rigs up 87, gas rigs up 27, and miscellaneous rigs up one, respectively.
The number of active Canadian rigs declined to 248 last week, down two rigs from the prior week. Oil rigs in Canada now stand at 163, up two. Gas rigs are at 85, down by four. Despite the modest week-over-week decline, the Canadian count is up 28 rigs compared to last year, with oil rigs accounting for all of those gains.
The international rig count increased by one to 901 rigs for the month of January and is up 60 rigs from the same month last year.
The number of oil and gas rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG), a key end-market for steel sheet.
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 November report is available here for Premium members.
For a history of both the US and Canadian rig count, visit the Rig Count page on 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 to side track an existing one. Wells 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 US 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 US 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 in China.
By Becca Moczygemba, email@example.com
Becca MoczygembaRead more from Becca Moczygemba
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