Features
Active rig counts slip in US, rise in Canada
Written by Brett Linton
January 10, 2025
Oil and gas drilling activity declined in the US through this week, while Canadian rig counts rebounded, according to the latest data from Baker Hughes.
US rig counts have remained within nine rigs of a multi-year low since last June. The latest count as of Jan. 8 marks the lowest level seen since November. In June 2024, we saw a two-and-a-half-year low of 581 rigs, while the highest count last year was 629 rigs in March.
The rebound in Canadian activity this week comes after the typical seasonal downturn seen around the end of each year. Canadian counts typically soar in January and February, then begin to ease as warmer spring weather approaches and thawing ground conditions limit access to roads and sites.
The international rig count (updated monthly rather than weekly) decreased to 909 in December. This is 10 rigs fewer than the November count and 46 fewer than the same month 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
Final Thoughts
Sure, demand isn’t as good the market had hoped it would be earlier this year. But assuming it doesn’t fall of a cliff, buyers will have to restock at some point. And that might give domestic mills enough leverage to raise prices again.
AISI: Raw steel production dips, remains near multi-month high
Following three weekly increases, domestic mill output edged lower last week, according to the American Iron and Steel Institute (AISI).
Nippon eyeing new $4B U.S. Steel mill to sweeten deal: Report
Nippon Steel could build a new domestic U.S. Steel mill with a total investment of $4 billion.
Final Thoughts
While I would anticipate market sentiment to pivot and improve if all the questions around tariffs were answered, that still leaves us with a few other factors.
Steel 101: Step inside a live steel mill
Go beyond the classroom with a behind-the-scenes mill tour at SMU’s next Steel 101 – an immersive, expert-led introduction to steel production and market dynamics.