Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending November 25th was 627 oil and 155 gas (totaling 782). In percentage terms, on a month on month (m/m) basis, oil rigs were up 2.8% and gas was down 0.6%. On a year on year (y/y) comparison, rigs were up 34.3% for oil and up 52.0% for gas. The combined figure for y/y was +37.8%, or +215 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 627 this week. Gas rigs bottomed-out at 68 in July 2020 then rose to 155 this week.

For the week ending November 25th, Texas was operating 370 rigs (48.2% of the total), followed by New Mexico with 105 (13.6%), and North Dakota with 38 (4.9%). Louisiana had 52 on-land and 14 off-shore (6.7%). Oklahoma count was 70 (9.1%). These five states together account for 82.8% 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.