Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending August 26th was 605 oil and 158 gas (totaling 763). In percentage terms, on a month on month (m/m) basis, oil rigs were flat, and gas was up 0.6%. On a year on year (y/y) comparison, rigs were up 47.6% for oil and up 62.9% for gas. The combined figure for y/y was +50.6%, or +257 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 dropped below 200 in 2020 and landed at 605 this week. Gas rigs bottomed-out at 68 in July 2020 then rose to 158 this week.

For the week ending August 26th, Texas was operating 371 rigs (49.6% of the total), followed by New Mexico with 106 (14.2%), and North Dakota with 37 (4.9%). Louisiana had 49 on-land and 16 off-shore (6.6%). Oklahoma count was 65 (8.7%). These five states together account for 84.1% of the nation’s rig count.

The energy agency says, “At the time, OPEC was not in a position to restore stability to the market, so it reached out to producers outside the group, including Russia and nine other countries. When Covid-19 and more unprecedented events struck, it affirmed how important the established framework was.”

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 – including special bar quality sucker rods for downhole pumping strings, to merchant and structural products for rigs and oilfield equipment.