Features

US rig counts fall to 2.5-year low, Canadian activity picks up
Written by Brett Linton
January 17, 2025
Active drilling rig activity in the US declined to a multi-year low this week, while Canadian counts marched higher, according to the latest data from Baker Hughes.
The latest US count of 580 rigs is the lowest weekly rate recorded since December 2021. US drilling activity has remained in this low ballpark since last June.
Canadian activity continues to rebound following the seasonal downturn seen at the turn of the calendar year. Canadian counts typically strengthen through February, then decline as warmer weather approaches and thawing ground conditions limit access to roads and drill 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.