Oil and Gas Rotary Rig Counts (US):  The total number of operating rigs in the U.S. the week as of December 25th was 264 oil and 83 gas (totaling 347). In percentage terms, on a month on month, (m/m) basis, oil rigs were up 9.5% and gas up 7.8%. On a year on year, (y/y) comparison, rigs were down 61.0% for oil and up 33.6% for gas. The combined figure for YoY was -56.8% or -457 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 landing at 264 this week. Gas rigs bottomed-out at 81 in August 2016 then rose to 86 this week.

For the week ending December 25th, Texas was operating 156 rigs (47.1% of the total), followed by New Mexico with 56, (16.9%), and North Dakota with 11, (3.3%). Louisiana had 29 on-land and 14 off-shore, (8.8%). Oklahoma count was 16, (4.8%). These five states together account for 81.0% of the nation’s rig count.

The energy agency says, “While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its pre-pandemic run rate by mid-2022.”

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.