OCTG

Drilling activity slows in US but picks up steam in Canada

August 9, 2025

Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.

The weekly count of active rotary rigs in the US, as reported by oilfield services provider Baker Hughes, ticked down by one to 539 as of Friday, Aug. 8. Active oil rigs increased by one, while gas and miscellaneous rigs both declined by one.

In Canada, the active rig count rose by three from the previous week to 180, just two below a recent high reached during the week ended July 25. Gas drilling activity increased by four rigs, while oil drilling declined by two rigs. Since April, no miscellaneous rigs had been counted, but during the week ended Aug. 8, one was.

The international rig count is reported monthly at the beginning of each month. The July count was 914 rigs, up one from June but down 20 from July 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.

On Friday, major metals distributor Russel Metals, with facilities spread across the US and Canada, reported steady demand from the oil and gas sector. It also noted an expected rise in demand in the industry due to the massive increase in power needs resulting from the current data center construction boom.

For a history of the US and Canadian rig counts, visit the rig count page on our website.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.