Rig count update: US activity increases, plunges in Canada

The number of oil and gas rigs operating in the US ticked higher this week, while Canadian activity tumbled, according to the latest data released from Baker Hughes.

Total US rig counts rose by three week over week (w/w) to 545 as of Dec. 23. While up, this count is just nine rigs higher than the near four-year low set in August, and 44 rigs below the same week last year.

Canadian activity declined by 67 rigs this week to a total of 118. This 36% drop reflects typical seasonal downturns experienced in late December. Activity also sharply dropped this same week last year, slipping from 191 to 166 rigs in one week. Canadian counts went on to touch a low of 94 rigs in the last week of 2024, but quickly rebounded in the first few weeks of the new year.

The monthly international rig count was updated earlier this month through November figures. This count increased by 14 rigs month over month to 1,073, 45 fewer than the same month 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.

Brett Linton

Brett Linton is a digital operations 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.