OCTG

Drill rig activity increases slightly in US and Canada

February 28, 2025

The number of active oil and gas rigs in the US and Canada increased marginally this week, according to Baker Hughes. US rig counts remain just above multi-year lows, while activity in Canada is within earshot of a seven-year high.

The US had 593 rigs in operation in the week ended Feb. 28, up by one from the previous week and up from the three-year low of 576 in late January. US drilling activity has remained at reduced levels since June 2024.

Canada’s rig count rose by four this week to 248 rigs. Four weeks ago, rig activity in Canada hit the highest weekly rate since March 2018. Historically, Canada’s counts tend to surge through February before declining as warmer weather and thawing ground conditions limit access to drill sites.

The international rig count is a monthly measure updated at the beginning of each month. The January count was 905, four fewer than in December and 60 fewer than in the same month last year.

The Baker Hughes rig count is significant for the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG), a key end market for steel sheet.

For a history of the US and Canada 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.