Features

Rig counts edge lower in US and Canada

May 23, 2025

Oil and gas drilling activity declined in both the US and Canada this week, according to Baker Hughes.

US drilling activity fell by 10 rigs to 566, dropping below the previous three-year low count of 576 witnessed in January. This marks the lowest drilling rate recorded since November 2021. Compared to the same week last year, the US rig count is down by 34.

In Canada, rig counts had broken their seasonal decline last week, but resumed it this week, falling by seven rigs to 114. Canadian activity typically peaks early in the year, then declines through April as thawing ground conditions limit access to roads and drilling sites. This time last year, there were six more rigs in operation.

The international rig count is reported monthly at the beginning of each month. The April count was 891 rigs, down eight from March and 87 fewer than one year ago.

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.