Environment and Energy

December 11, 2015
Active Gas & Oil Rig Count in mid-December
Written by Brett Linton
According to Baker Hughes data from December 11, 2015, the U.S rig count for the week was 709 rigs exploring for or developing oil or natural gas. This is a decrease of 28 rigs compared to last week, with oil rigs down 21 to 524 rigs, gas rigs down 7 to 185 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to this time last year, the 709 count is down 1,184 rigs, with oil rigs down 1,022, gas rigs down 161, and miscellaneous rigs down 1.
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 both the short lead times on hot rolled and plate at North American steel producers and the falling steel prices we have seen going back to mid-2014.


