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
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
CRU: Downstream tariffs will not change the stainless market, but domestic expansion will
US tariff expansion to stainless material in imported downstream products will not be enough on its own to incentivize capital investment
Final Thoughts
Is there any clarity to be hoped for on the tariff front?
SMU Survey: Mill lead times remain short
Steel mill lead times on sheet products contracted across the board this week compared to early July, while plate production times moderately extended, according to steel buyers responding to this week’s market survey.
SMU Survey: Most buyers say mills are open to negotiating prices
More than nine out of every ten steel buyers polled by SMU this week reported that mills are negotiable on new order prices. Negotiation rates have increased in each of our last three surveys following the early-June lull, reaching a record high this week.