Environment and Energy

Rig Counts Rebound in US and Canada

Written by Becca Moczygemba


After nine weeks of declines, the oil and gas rotary rig count is back up in the US. Canada’s count also saw an increase from the previous week, according to the latest data from oilfield services company Baker Hughes.

The total US rig count sat at 680 active rigs as of July 7, up six from the week prior. Active oil rigs in the US decreased by five while active gas rigs increased by 11, and miscellaneous rigs were steady at five.

The US rig count is down by 72 rigs when compared to last year, with oil rigs down by 57, gas rigs down 18, and miscellaneous rigs up three.

0707 RigCount Fig1

0707 RigCount Tab 1

Canada’s rig count jumped for the week ended July 7. Active oil rigs are up by two to 111, and gas rigs are up six to 64.

The Canadian rig count is exactly the same as it was one year ago. 

0707 RigCount Fig2

The international rig count is up by two from 965 in may to 967 rigs in June, and is up by 143 rigs compared with the same time period last year, Baker Hughes said.

The number of oil and gas rigs in operation is important to the steel industry as 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.

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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