Steel Products

Drilling activity slows further in US and Canada

May 30, 2025

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

The US rig count dropped by three to 563, falling below last week’s multi-year low and marking the slowest rate seen since November 2021. Compared to the same week last year, 37 fewer rigs are in operation today.

Canadian counts fell by two rigs to 112, 16 fewer than the same week last year. Canadian activity typically peaks early in the year and declines into the spring as thawing ground conditions limit access to drilling sites.

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.