Steel Markets
March 27, 2015
Active Gas & Oil Rig Count Continues to Tumble
Written by Brett Linton
According to Baker Hughes data from March 27th, 2015, the U.S rig count for the week was 1,048 rigs exploring for or developing oil or natural gas. The rig count is down 21 rigs when compared to last week, with oil rigs down 12 to 813 rigs, gas rigs down 9 to 233 rigs, and miscellaneous rigs unchanged at 2 rigs. Compared to this time last year, the 1,048 count is a decrease of 761 rigs, with oil rigs down by 674, gas rigs down by 85, and miscellaneous rigs down by 2.
The decline in the drilling of new gas and oil wells is having a direct impact on the amount of line pipe, storage tanks and OCTG that is being used by the energy sector. A good portion of these products come from hot rolled coil or plate substrate and are reasons for the short lead times on hot rolled and plate at the U.S. and Canadian steel producers.
