Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending February 23rd was 503 oil and 120 gas (totaling 623). In percentage terms, on a month on month (m/m) basis, oil rigs were up 0.8% and gas was up 0.8%. On a year on year (y/y) comparison, rigs were down 16.2% for oil and down 20.5% for gas. The combined figure for y/y was -16.9%, or -127 rigs.

Figure 1 shows the Baker Hughes U.S. Rotary Rig Counts for oil and gas equipment in the U.S. from 2014 to present. Oil rigs dropped below 200 in 2020 and landed at 503 this week. Gas rigs bottomed-out at 68 in July 2020 then rose to 120 this week.

For the week ending February 23rd, Texas was operating 297 rigs (49.0% of the total), followed by New Mexico with 102 (16.8%), and North Dakota with 32 (5.2%). Louisiana had 31 on-land and 14 off-shore (5.1%). Oklahoma count was 44 (7.2%). These five states together account for 83.5% of the nation’s rig count.

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 – including special bar quality sucker rods for downhole pumping strings, to merchant and structural products for rigs and oilfield equipment.