Environment and Energy

Rig Counts: US Down for Seventh Week, Canada Up Again

Written by Becca Moczygemba


Rig counts are down for the seventh consecutive week in the US but up in Canada for the week ended June 16, according to the latest data from oilfield services company Baker Hughes. 

The total US rig count stands at 687 active rigs as of June 16, down eight from the previous week. The number of active oil rigs in the US decreased by 4 to 552 compared to a week earlier. Active gas rigs also dropped by 5 to 130 in the same comparison, while miscellaneous rigs increased by one to five. When compared to this time last year, the US count is down by 53 rigs, with oil rigs down 32, gas rigs down 24, and miscellaneous rigs up three, respectively.

0616 RigCount Fig1

 

0616 RigCount Tab 1

 

The number of active Canadian rigs is up by 23 to 159 rigs as of June 16 compared to the previous week. Active oil rigs in Canada were up to 18 to 103 week over week, and gas rigs increased by five to 56. Canada’s rig count is up three rigs from last year’s count of 156, with oil rigs down one, and gas rigs up four, respectively.

0616 RigCount Fig2

The international rig count increased by 18 to 965 rigs in May vs. April, and is up by 148 rigs compared with 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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