Oil and Gas Rotary Rig Counts (US):  The total number of operating rigs in the U.S. the week as of October 30th was 221 oil and 71 gas (totaling 296). In percentage terms, on a month on month, (m/m) basis, oil rigs were up 16.9% and gas down 1.7%. On a year on year, (y/y) comparison, rigs were down 68.0% for oil and down 44.6% for gas. The combined figure for YoY was -64.0% or -526 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 258 this week.

For the week ending October 30th, Texas was operating 132 rigs (44.6% of the total), followed by New Mexico with 47, (15.9%), and North Dakota with 11, (3.7%). Louisiana had 25 on-land and 12 off-shore, (8.4%). Oklahoma count was 14, (4.7%). These five states together account for 77.4% 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.