Oil and Gas Rotary Rig Counts:  The total number of operating rigs in the U.S. as of March 26th was 324 oil and 92 gas (totaling 416). In percentage terms, on a month on month (m/m) basis, oil rigs were up 4.9% and gas was flat. Looking at year over year (y/y), rigs were down 48.1% for oil and down 9.8% for gas. The combined figure for y/y was -42.7%, or -311 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 since 2015 and landed at 324 this week. Gas rigs bottomed-out at 81 in August 2016 then rose to 92 this week.

For the week ending March 26th, Texas was operating 205 rigs (50.1% of the total), followed by New Mexico with 67, (16.5%), and North Dakota with 14, (3.5%). Louisiana had 36 on-land and 10 off-shore, (8.8%). Oklahoma’s count was 17, (4.2%). These five states together account for 83.7% 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.