Features
Active rig counts fall in US, rise in Canada
Written by Brett Linton
August 23, 2024
The number of US drill rigs in operation ticked lower last week while Canadian activity increased, according to the latest data released from Baker Hughes. US rig counts have gone up and down since June, hovering near multi-year lows. Canadian activity has trended upwards since a mid-May seasonal low, rising to a five-month high last week.
US rigs
Through Aug. 23, there are 585 US drilling rigs in operation, one less than the week prior. Oil rigs held steady at 483, gas rigs fell by one to 97, and miscellaneous rigs were unchanged at five.
There were 47 fewer active US rigs last week compared to the same week last year, with 29 less oil rigs and 18 less gas rigs.
Canada rigs
Last week, there were 219 active Canadian rigs, two higher than the week before. Oil rigs rose by two to 153 and gas rigs remained at 66.
There are currently 29 more drilling rigs operating in Canada than one year prior, with 37 more oil rigs and 8 less gas rigs.
International rig count
The international rig count is updated monthly. The total number of active rigs for the month of July fell to 934, 23 less than the June count and down by 27 from 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
Apparent steel supply climbs in June
The amount of finished steel coming into the US market increased 3% from May to June, climbing to one of the highest rates seen in recent years, according to SMU’s analysis of Department of Commerce and American Iron and Steel Institute (AISI) data
AISI: Domestic steel production climbs to a 3.5-year high
US steel mills have ramped up output since April, with weekly production increasing in all but four of the past 16 weeks.
Final Thoughts
What are our scrap survey participants saying about the market?
Price on Trade: 40% Brazil tariffs, Section 232 copper program, and misplaced carbon claims
The administration continues to negotiate deals with US trading partners, and the reciprocal tariff program appears poised for further modification. This week, we focus on other important developments that may have received less media attention.
SMU Survey: Modest improvement in Sentiment Indices
Both SMU Sentiment Indices continue to show that buyers remain optimistic for their company’s chances of success, though far less confident than they felt earlier in the year.