OCTG

Rig count declines in US and in Canada

Written by Brett Linton


US and Canadian rig counts both eased this week, according to the latest release from Baker Hughes on March 8. Recall that US rigs had reached a 5-month high last week. The decline seen in Canadian activity follows the seasonal trends typically experienced in March.

US rigs

The number of active rotary rigs in the US declined by seven week over week (w/w) to 622. Oil rigs fell by two to 504, gas rigs declined by four to 115, and miscellaneous rigs decreased by one to three.

This week there are 124 fewer active US rigs compared to the same week last year when 746 rigs were in operation. In this time oil rig counts have fallen by 86, gas rigs are down by 38, and miscellaneous rigs are unchanged.

Canada rigs

The number of operating oil and gas rigs in Canada eased by six w/w to 225. Oil rigs fell by three to 141 and gas rigs declined by three to 84.

Drilling in Canada is up vs. the same week last year. There are two more oil rigs running now than there were one year ago.

International rig count

The international rig count is updated monthly. The total number of active rigs for the month of February was 958, down seven from January, but up 43 from February 2023.

The Baker Hughes rig count is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG), a key end market for steel sheet. A rotary rig rotates the drill pipe from the surface to either drill a new well or sidetrack an existing one. For a history of the US and Canadian rig counts, visit the rig count page on our website.

Brett Linton

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