Oil and Gas Rotary Rig Counts:  The total number of operating rigs in the U.S. the week as of September 25th was 183 oil and 75 gas (totaling 258). In percentage terms, on a month on month, (m/m) basis, oil rigs were up 1.7% and gas up 4.2%. On a year on year, (y/y) comparison, rigs were down 74.3% for oil and down 48.6% for gas. The combined figure for YoY was -69.7% or -599 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 have dropped below 1,000 rigs starting in 2015 and landed at 258 this week.

For the week ending September 25th, Texas was operating 114 rigs (44.7% of the total), followed by New Mexico with 45, (17.6%), and North Dakota with 10, (4.0%). Louisiana had 28 on-land and 12 off-shore, (11%). Oklahoma count was 12, (4.7%). These five states together account for 82% of the nation’s rig count.

The energy agency says, “The threat of being infected by the COVID-19 virus threatens a further recovery in oil demand”.

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 to include Special Bar Quality sucker rods for downhole pumping strings to merchant and structural products for rigs and oilfield equipment.