Steel Markets
April 3, 2015
Active Gas & Oil Rig Count Continues To Drop
Written by Brett Linton
According to Baker Hughes data from April 2nd, 2015, the U.S rig count for the week was 1,028 rigs exploring for or developing oil or natural gas. The rig count is down 20 rigs when compared to last week, with oil rigs down 11 to 802 rigs, gas rigs down 11 to 222 rigs, and miscellaneous rigs up 2 to 4 rigs. Compared to this time last year, the 1,028 count is down 790 rigs, with oil rigs down by 696, gas rigs down by 94, and miscellaneous rigs unchanged.
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 and the falling hot rolled steel prices we have seen going back to mid-2014.
