Steel Mills
Rig Counts Continue to Drop in US, Canada
Written by Becca Moczygemba
April 14, 2023
Rig counts continue to fall in the US and Canada, according to the latest data from oilfield services company Baker Hughes.
The total US rig count was 748 for the week ended April 14, down three rigs from the week prior. The number of active oil rigs in the US dropped by two from the prior week’s 588. The number of gas rigs fell by one to 157. Compared to this time last year, the US count is up by 55 rigs, with oil rigs up 40, gas rigs up 14, and miscellaneous rigs up one.
The total number of active Canadian rigs fell to 127 this week, down by 16 from the previous week. Active oil rigs in Canada dropped to 45 from 52, while gas rigs decreased from 75 to 66. The Canadian count is up by 8 rigs compared to last year, with oil rigs accounting for most of those gains.
The international rig count increased by 15 to 930 rigs for the month of March vs. February and is up by 115 rigs over 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.
A rotary rig is one that rotates the drill pipe from the surface to either drill a new well or to sidetrack 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.
Steel Market Update regularly 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.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
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