Features

Drill rig activity slips in US and Canada

March 7, 2025

The latest count of oil and gas rigs operating in the US and Canada has declined slightly through the week ending March 7, according to Baker Hughes. US rig counts remain marginally above multi-year lows, while Canadian activity is experiencing a seasonal decline from a recent seven-year high.

The latest US rig count stands at 592, one fewer than the prior week. Compare this to the three-year low count of 576 seen in late January. US drilling activity has remained at reduced levels since June 2024.

Canadian activity declined by 14 rigs this week to 234 rigs. Just over a month ago, Canadian counts reached the highest weekly rate recorded since March 2018. Historically, Canadian counts tend to surge in January and February, then decline through April, as thawing ground conditions and melting snow make access to drilling sites more challenging.

The international rig count is a monthly measure that is updated at the beginning of each month. This week the February count was updated to 905 rigs, unchanged from January and 53 fewer than the same month last year.

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

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.