Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending February 26th was 309 oil and 92 gas (totaling 401). In percentage terms, on a month on month (m/m) basis, oil rigs were up 4.7% and gas up 4.5% On a year over year (y/y) comparison, rigs were down 54.4% for oil and down 16.4% for gas. The combined figure for y/y was -49.1% or -388 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 landed at 309 this week. Gas rigs bottomed-out at 81 in August 2016 then rose to 92 this week.

For the week ending February 26th, Texas was operating 195 rigs (50.6% of the total), followed by New Mexico with 62, (16.1%), and North Dakota with 14, (3.6%). Louisiana had 32 on-land and 15 off-shore, (8.3%). Oklahoma count was 17, (4.4%). These five states together account for 83.1% of the nation’s rig count.

The energy agency says, “While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its pre-pandemic run rate by mid-2022.”

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.