Trade Cases
US Rig Count Declines for Seventh Week, Canada Rises for Fifth
June 23, 2023
US rig counts dropped for the week ended June 23, while Canada’s count increased, according to the latest data from oilfield services company Baker Hughes. This marks the eighth consecutive week-over-week decline in the US and fifth consecutive weekly increase in Canada.
The total US rig count stood at 682 active rigs as of June 23, off five from the prior week. Active oil rigs in the US slipped by six rigs to 546 vs. a week earlier, while active gas rigs remained unchaged at 130 in the same comparison, and miscellaneous rigs increased by one to six rigs. The US rig count is down by 71 rigs when compared to a year earlier, with oil rigs down 48, gas rigs down 27, and miscellaneous up four, respectively.
For Canada, its rig count rose by 10 to 169 vs. the previous week, as oil rigs were up seven to 110, and gas rigs increased by three rigs to 59, respectively.
Compared with last year, Canada’s rig count is up by 15, with oil rigs up six, and gas rigs up nine, respectively.
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, Baker Hughes said.
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 Ethan Bernard, ethan@steelmarketupdate.com
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