Features

Drilling activity slows in the US, grows in Canada
Written by David Schollaert
June 6, 2025
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US totals slipped for a sixth straight week, while Canada saw a slight bump in activity.
The US rig count dropped by four to 559, falling from last week’s multi-year low and marking the slowest rate seen since November 2021. Compared to the same week last year, 35 fewer rigs are currently in operation.
Canada’s count increased by two rigs to 114. But it remained 29 behind the same week last year. Canadian activity typically peaks early in the year and declines into the spring as thawing ground conditions (aka mud) limit access to drilling sites.

The international rig count is reported monthly at the beginning of each month. The May count was 886 rigs, down five from April and 67 from the same time last year.

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

David Schollaert
Read more from David SchollaertLatest in Features

Final Thoughts
I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.

US rebar producers seek import relief with new trade case
The four countries targeted for duties are currently the top offshore suppliers of rebar to the US market: Algeria, Bulgaria, Egypt, and Vietnam.

SMU Steel Summit 2025: Keeping you a step ahead
With the pace that news has been breaking lately, there will be no shortage of things to discuss.

Join SMU for a Community Chat With Timna Tanners on Wednesday at 11 am ET!
Timna Tanners, managing director of equity research for Wolfe Research, will be the featured speaker on the next SMU Community Chat. The webinar will be on Wednesday, June 11, at 11 am ET. It’s free to attend.