Steel Products
Rig Counts: US Drops, Canada Sees Modest Increase
Written by Becca Moczygemba
July 31, 2023
The rig count roller coaster continues, with numbers dropping in the US but inching up in Canada this week, according to the latest data from oilfield services company Baker Hughes.
The total US rig count dipped to 664 active rigs as of July 28, down five from the week prior. Active oil rigs in the US decreased by one to 529 in the same comparison, while active gas rigs dropped by three to 128, and miscellaneous rigs fell by one to a total of seven.
The US rig count is down by 103 rigs when compared to the same period one year ago. Oil rigs are down by 76, gas rigs are down 29, and miscellaneous rigs up by two in the same comparison.
Canada’s rig count jumped by six to 193 for the week ended July 28 when compared with the previous week. Active oil rigs are up by five to 121, and gas rigs are up by one to 72 in the same comparison.
The Canadian rig count is down by 11 from one year ago, with oil rigs declining by 16 rigs, and gas rigs increasing by five.
The international rig count is up by two to 967 rigs in June vs. May, 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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Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.