Features

US rig counts decline further, increase in Canada

January 24, 2025

The number of active oil and gas rigs drilling in the US continued to decline last week, according to Baker Hughes, remaining at a multi-year low. Meanwhile, Canadian drilling activity marched to the beat of a different drum, rising to a near-two-year high this week.

The current US rig count is 576 rigs, marking the lowest weekly rate recorded since December 2021. US drilling activity has been at a reduced level since last June.

Canadian activity continues to rebound following the seasonal slowdown seen in late December and early January. Historically, Canadian counts often surge through February, then decline as warmer weather and thawing ground conditions limit access to drill sites and roads. The last week to see a higher Canadian count was back in March 2023.

The international rig count, updated monthly, decreased to 909 in December. This is down 10 rigs from 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

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.