Features
Rig count: US activity slips, Canadian count rises
Written by Brett Linton
August 2, 2024
US drill rig activity resumed its downward trend last week, according to the latest data from Baker Hughes. Meanwhile Canadian counts ticked higher for the fifth consecutive week. They now stand near a five-month high.
US rigs
Through August 2 data, the number of active drilling rigs in the US declined by three week over week to a total of 586 rigs. Oil rigs were unchanged at 482, natural gas rigs fell by three to 98, and miscellaneous rigs held steady at six.
There were 73 fewer active rigs in the US this week compared to the same week last year. The number of active oil rigs was down by 43, gas rigs were down by 30, and miscellaneous rigs were unchanged.
Canada rigs
The number of rigs operating in Canada increased by eight to 219. Oil rigs rose by six to 150. And gas rigs increased by two to 69. This marks the highest Canadian count since early March.
Currently, there are 31 more drilling rigs operating in Canada than there were one year ago. Oil rigs were up by 32, gas rigs were down by one, and miscellaneous rigs were unchanged.
International rig count
The international rig count is updated monthly. The total number of active rigs for the month of July fell to 934. That’s down by 23 compared to the June count and 27 less than levels one year prior.
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
Read more from Brett LintonLatest in Features
Final Thoughts
There are days when this feels like a “nothing ever happens” market. Don’t get me wrong. Plenty is happening in the world. It’s just that none of it seems to matter when it comes to sheet and plate prices.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.
Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
Final Thoughts: AMU brings the news
Usually, I write about steel in this column because, well, we’re Steel Market Update. But before I get to steel, I want to give a shoutout to my colleagues at Aluminum Market Update (AMU) – SMU’s new sister publication.