OCTG

Drill rig activity stabilizes in US and Canada

August 16, 2024

Oil and gas drill rig activity in the US inched lower last week while holding steady in Canada, according to the latest report from oilfield services provider Baker Hughes. US rig counts have remained rangebound for the past two months, hovering near low levels last seen in late 2021. Meanwhile, activity in Canada has increased since a mid-May seasonal low and is now nearing a five-month high.

Note: We recently published our monthly Energy Market Update to Premium members, covering North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. For information on how to upgrade to a Premium-level subscription, contact info@steelmarketupdate.com.

US rigs

Through Aug. 16, the number of active drilling rigs in the US declined by two week over week to a total of 586 rigs. Oil rigs fell by two to 483, gas rigs rose by one to 98, and miscellaneous rigs eased by one to five.

There were 56 fewer active rigs in the US this week compared to one year ago. The number of active oil rigs is down by 37, gas rigs are down by 19, and miscellaneous rigs are unchanged.

Canadian rigs

The number of rigs operating in Canada held steady at 217 in the week ended Aug. 16. Oil rigs rose by four to 151, gas rigs fell by three to 66, and miscellaneous rigs declined by one to zero.

Currently, 28 more drilling rigs are operating in Canada than there were at this time last year. Oil rigs are up by 32, gas rigs are down by four, and miscellaneous rigs are 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 23 less than the June count and down by 27 from July 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

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.