Oil and Gas Rotary Rig Counts:  The total number of operating rigs in the U.S. the week of August 28th was 180 oil and 72 gas (totaling 252). In percentage terms, on a month on month (m/m) basis, oil rigs were neutral and gas was up 4.3%. On a year on year, (y/y) comparison, rigs were down 75.7% for oil and down 55.6% for gas. The combined figure for YoY was -71.9% or -650 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 have dropped below 1,000 rigs starting in 2015 and landing at 252 this week. Gas rigs bottomed-out at 81 in August 2016 then rose to 72 this week.

For the week ending August 28th, Texas was operating 104 rigs (43.2% of the total), followed by New Mexico with 46 (19.1%), and North Dakota with 10 (4.1%). Louisiana had 24 on-land and 10 off-shore (10%). Oklahoma count was 11 (4.6%). These five states together account for 81% of the nation’s rig count.

The energy agency says, “The threat of being infected by the COVID-19 virus threatens a further recovery in oil demand”.

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.