Steel Products
Rig Counts Drop in US and Canada
Written by Becca Moczygemba
August 4, 2023
Rig counts in the US and Canada are back down this week, according to to the latest data from oilfield services company Baker Hughes.
The total US rig count dipped to 659 active rigs as of August 4, down by five from the week prior. Active oil rigs in the US decreased by four to 525, while active gas rigs remained stable. Miscellaneous rigs fell by one to a total of six.
When compared to the same time last year, there are 105 fewer rigs in the US. Gas rigs are down 33, oil rigs are down 73, and miscellaneous rigs are up one from last year.
The number of rigs in Canada decreased by five from last week to 188 for the week ending August 4. Oil rigs decreased by three, totaling 118, and gas rigs dropped by two to 70.
The number of oil rigs in Canada is down by 22 compared to a year ago, while the number of gas rigs is up by 7.
The international rig count is down by six from June to 961 rigs in July, but is up by 128 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.
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products
CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.
CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.