Steel Products
Rig Count Falls in US and Canada
Written by Becca Moczygemba
September 5, 2023
US and Canadian rig counts both dropped last week, according to the latest data from oilfield services company Baker Hughes.
Active rigs in the US fell to 631 as of Sept. 1, down by one from the previous week.
US oil rigs remained unchanged week over week at 512, while gas rigs fell by one to 114. Miscellaneous rigs were unchanged at 5.
Compared to the same period one year ago, the US rig count is down by 129 rigs, oil rigs are off by 84, and gas rigs are down by 48. However, miscellaneous rigs are up by three to five, according to Baker Hughes..
Canadian rigs are down by three to 187 week over week. Oil rigs in Canada are down by one to 115, while gas rigs are down two to 72 in the same comparison.
Working rigs in Canada are down by 21 year over year, with oil rigs off by 28, while gas rigs are up by 7.
The international rig count is down by nine from July to 952 rigs in August, but is up by 92 rigs from August 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.
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products
September energy market update
In this Premium analysis we examine North American oil and natural gas prices, drill rig activity, and crude oil stock levels through September. Trends in energy prices and rig counts serve as leading indicators for oil country tubular goods (OCTG) and line pipe demand.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]
SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.