Oil and Gas Rotary Rig Counts

Oil and Gas Rotary Rig Counts:  The total number of operating rigs in the U.S. the week of July 31th was 180 oil and 69 gas (totaling 249). In percentage terms, on a month on month, (m/m) basis, oil rigs were down 2.7% and gas down 9.2%. On a year on year, (y/y) comparison, rigs were down 76.6% for oil and down 59.6% for gas. The combined figure for y/y was -73.4% or -691 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 249 this week. Gas rigs bottomed-out at 81 in August 2016 then declined to 69 this week.

For the week ending July 31th, Texas was operating 101 rigs (40.2% of the total), followed by New Mexico with 49, (19.5%), North Dakota with 11, (0.4%). Louisiana had 20 on-land and 9 off-shore, (11.5%). Oklahoma count was 11, (0.4%). These five states together account for 80.1% of the nation’s rig count.

The energy agency says, “is on track for a fourth month of gains, while US crude is heading for a third, as both rise from depths hit in April when much of the world was in lockdown”.

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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