Features
US rig count holds steady, Canada faces seasonal decline
Written by Brett Linton
March 14, 2025
The latest count of active US oil and gas rigs remained unchanged from last week, while Canadian counts declined, according to Baker Hughes.
US rig counts continue to hover slightly above multi-year lows, while Canadian activity is entering a seasonal decline after recently reaching a seven-year high.
The latest US rig count stands at 592, unchanged from the prior week, and marginally higher than the three-year low count of 576 witnessed in late January. US drilling activity has remained at reduced levels since June 2024.
Canadian counts fell by 35 rigs this week to 199 rigs. Recall that just over a month ago, Canadian drilling activity peaked at a the highest weekly count recorded since March 2018. Historically, Canadian activity tends to spike in January and February, then decline through April as thawing ground conditions and melting snow complicate access to drilling sites.
The international rig count is a monthly measure that is updated at the beginning of each month. The February count was 905 rigs, in line with January levels 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
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.