Rig counts dropped in Canada and rose in the US this week, according to data from oilfield services company Baker Hughes.
The total US rig count was 754 for the week ended March 17, up eight rigs from the week prior. The number of active oil rigs in the US fell by one to 589 from the prior week. The number of gas rigs jumped nine to 162. Compared to this time last year, the US count is up 91 rigs, with oil rigs up 65, gas rigs up 25, and miscellaneous rigs up one, respectively.
The number of active Canadian rigs decreased by 16 to 207 last week from the prior week. Oil rigs in Canada dropped to 122 from 139, while gas rigs stood at 85, up by one in the same comparison. The Canadian count is up 30 rigs compared to last year, with oil rigs accounting for most of those gains.
The international rig count increased by 14 to 915 rigs for the month of February vs. the prior month and is up 28 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.
Steel Market Update also publishes an in-depth “Energy Update” report covering oil and natural gas prices, detailed rig count data, and oil stock levels. That 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.
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.
By Becca Moczygemba, email@example.com
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