US drill rig count steady; Canada slumps

The number of drill rigs operating in the United States stayed steady for the second time in the past three weeks despite the recent climb in gas prices

US operating rigs were reported at 663 on Friday March 18, flat with the previous week, data from Baker Hughes Inc showed.

Oil rigs were reported at 524, down by three from 527 in the prior week. The gas rig count increased by two week on week and came in at 137. There was also one miscellaneous addition reported by Baker Hughes. Total US rigs remain up 61.31% year on year from 411 in the comparable week of 2021.

Prior to the Covid-19 pandemic, the number of US rigs in operation typically ranged from 700-1,000 rigs each week from January 2019-March 2020. Since hitting a pandemic low of 244 rigs in the week to August 14, 2020, the US rig count has risen by 171.72% and stands at its highest level since reaching 664 rigs in the week to April 3, 2020.

West Texas Intermediate (WTI) crude oil prices have settled down somewhat, landing at $103.09 per barrel on March 18, down from $109.33 per barrel on March 11. As of mid-morning on Monday March 21, the WTI index for April contract had bounced back up to $109.64 per barrel.

In Canada, the rig count dropped by 30 to land at 176, a 14.56% week-on-week decrease. Still, the total operational rig count represents a 91.30% year-on-year increase from 92 rigs at the same time in 2021.

The number of Canadian oil rigs operating last week totaled 103, down 24 from 127 the prior week. The gas rig count was 73, down by six on the week.

Optimism has continued to build in the US country tubular goods (OCTG) and line pipe markets, and hot-rolled coil prices have continued to rebound to near $70 per hundredweight.

What to read next
The Trump administration has introduced reciprocal tariffs, matching about half the rates imposed by US trade partners, with a minimum of 10%, to boost domestic industries and achieve "economic independence." While praised by US steel manufacturers for protecting jobs, the effect on trade relationships with partners like Canada and Mexico remains uncertain.
In the second of a two-part series, Fastmarkets looks at opportunities for the Asia ferro-alloys sector that could result from US-China trade tensions or against a backdrop of greater trade protection, ahead of the Asia Ferroalloys 2025 Conference
As US-China trade tensions intensify, Fastmarkets outlines the key challenges and opportunities for the Asian ferro-alloys sector ahead of the Asia Ferroalloys 2025 Conference.
The 2025 executive order on U.S. mineral production is a major step toward strengthening domestic supply chains and national security. By boosting domestic mineral production, it aims to reduce reliance on imports and ensure a secure future for critical industries. This order will shape the future of U.S. mining and its role in global markets.
AG-SYB-0078 Crush Margin China Soy (Brazil) March 20, 2024:M1: 104.25 yuan per tonneM2: 63.25 yuan per tonneM3: 43.25 yuan per tonneM4: -44.75 yuan per tonneM5: -122.25 yuan per tonneM6: -132.75 yuan per tonne August 21, 2024:M1: -5 yuan per tonneM2: -6.75 yuan per tonneM3: -50.25 yuan per tonneM4: -100.5 yuan per tonneM5: 23.5 yuan per tonneM6: 34.5 yuan per tonne AG-SYB-0079 Crush Margin China Soy (US Gulf) March 20, […]
This consultation, which is open until April 28, 2025, seeks to ensure that our methodologies continue to reflect the physical market, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency. You can find the […]