Rig Counts Continue to Drop in US, Canada

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