OCTG
Rig count update: US activity stable, Canada slips
Written by Brett Linton
December 20, 2024
The number of oil and gas rigs operating in the US remained unchanged this week for the second consecutive week, while Canadian activity declined, according to the latest data released from Baker Hughes.
US activity has stayed within nine rigs of a multi-year low for the past six months (Figure 1). The lowest weekly count of the year was 581 rigs in June, while the highest was 629 rigs in March.
The 13% weekly decline seen in Canadian rig counts this week reflects typical seasonal downturns experienced in December. Activity also sharply dropped this same week last year, slipping from 185 to 146 rigs in one week. Last year, Canadian counts went on to touch a low of 86 rigs by the final week of 2023, but quickly rebounded in the following three weeks.
The international rig count (updated monthly rather than weekly) eased to 919 in November. This is down 31 rigs from October and 59 fewer than the same time last year.
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
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