Features

Active rig counts fall in US, rise in Canada

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

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.