OCTG

Rig counts trend lower in US and Canada

May 2, 2025

Oil and gas drilling activity eased in both the US and Canada this week, according to Baker Hughes. US rig counts remain near multi-year lows, and Canadian activity continues its seasonal slowdown.

US drilling activity eased by three rigs to 584 rigs this week, the second-lowest weekly rate seen in the last three months. Drilling activity has remained at reduced levels for nearly a year, recently falling to a three-year low of 576 rigs in January. At this time last year, the US had 21 more rigs in operation.

Canadian drilling continues to seasonally decline following its winter peak. Total oil and gas rig counts fell by eight this week to 120. Canadian activity typically surges early in the year, then declines through April as thawing ground conditions limit access to roads and drilling sites. Canadian rig counts this week are identical to levels seen this time last year.

The international rig count is reported monthly at the start of each month. The April count was 891 rigs, down eight from March and 87 fewer than the same month of 2024.

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.