Rig Count Falls in US and Canada

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.