Rig Count Drops Again in US, Edges Up in Canada

Oil rigs in the US dropped from 525 in the week prior to 520, and gas rigs fell from 123 to 117. Miscellaneous rigs were down by one to five.

Compared to the same period one year ago, active rigs are down by a total of 120. There are 81 fewer oil rigs and 42 fewer gas rigs, while miscellaneous rigs are up by three.

A slight decrease in active rigs in Canada brings the total count to 189.

Oil rigs in Canada inched up by three to 119, but gas rigs were down by four to 70.

Working rigs in Canada are down by 12 from this time last year to 201. Oil rigs are down by 18, but gas rigs are up by 6.

The international rig count is down by six from June to 961 rigs in July, but is up by 128 rigs from July 2022, 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.