Features
Rig count update: US activity stable, Canada down
Written by Brett Linton
November 8, 2024
Active oil and gas rig counts remained unchanged in the US last week, while Canadian activity ticked lower, according to the latest release from Baker Hughes.
US counts have hovered in this territory since June, just above multi-year lows. Canadian counts have trended lower since early October but remain historically high.
US rigs
Through Nov. 8, there were 585 drilling rigs operating in the US, unchanged since mid-October. This count included 479 oil rigs, 102 gas rigs, and four miscellaneous rigs. There were 31 fewer active US rigs last week compared to the same week one year prior.
Canada rigs
There were 207 Canadian drilling rigs in operation last week, six fewer than the prior week. Oil rig counts fell by four week over week to 142, gas rigs declined by two to 65, and miscellaneous rigs remained at zero. There are currently eight more Canadian rigs in operation than levels one year ago.
International rig count
The international rig count is a monthly figure updated at the beginning of each month. The total number of active rigs for the month of October rose to 950, up three from September but 12 fewer than levels seen one year ago.
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
Tariff-related noise aside, there is one basic factor keeping buyers on the sidelines. Despite recent declines, HR prices remain at historically high levels. And there is no obvious support to keep them there.
Get an inside look at steelmaking at SMU’s Steel 101 workshop
If you’re looking to build a solid foundation in steel or sharpen the knowledge you already have, the SMU Steel 101 Workshop is a great place to start. Our next workshop will be held in Memphis, Tenn. on June 10-11, 2025
AISI: Raw steel production climbs to 7-month high
US steel mills produced more raw steel last week than they have over the past seven months, according to the American Iron and Steel Institute.
Final Thoughts
United Airlines raised eyebrows earlier this month when it provided two forecasts for 2025 – one assuming a relatively stable economy and another assuming a recession. The reason? Uncertainty around the impact of President Trump’s policy shocks on the broader economy. And it sometimes feels like we’re seeing a battle between those two narratives (stable vs recession) play out within in the pages of this newsletter.
Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.