Oil and Gas Rotary Rig Counts

Oil & Gas Rotary Rig Counts: The total number of operating rigs in the U.S. the week as of June 26th was 188 oil and 75 gas (totaling 263). In percentage terms, on a month on month, (m/m) basis, oil rigs were down 15.3% and gas down 2.6%. On a year on year, (y/y) comparison, rigs were down 76.3% for oil and down 56.6% for gas. The combined figure for YoY was -72.6% or -702 rigs.

Figure 1 shows the Baker Hughes U.S. Rotary Rig Counts for oil and gas equipment in the U.S. from 2012 to present. Oil rigs rose have dropped below 1,000 rigs starting in 2015 and landing at 678 this week. Gas rigs bottomed-out at 81 in August 2016 then rose steadily topping out at 110 this week.

For the week ending June 26th, Texas was operating 112 rigs (42.3% of the total), followed by New Mexico with 50, (18.7%), North Dakota with 11, (3.8%). Louisiana had 21 on-land and 11 off-shore, (12.1%). Oklahoma count was 10, (3.7%). These five states together account for 81.1% of the nation’s rig count.

The energy agency says, “consumption increased by 0.9 million barrels a day, with China the biggest driver, accounting for more than three quarters of net global growth, followed by India and Indonesia. Supply growth in liquefied natural gas was driven by the US and Russia, with additional supplies mostly imported by Europe. Production grew ahead of demand sending prices 20% lower on average”.

At Gerdau we monitor rig counts along with the price of oil and natural gas since it has a major impact on long product sales to include Special Bar Quality sucker rods for downhole pumping strings to merchant and structural products for rigs and oilfield equipment.

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