The total number of operating rigs in the U.S. the week as of February 14th was 678 oil and 110 gas (totaling 788). In percentage terms, on a month on month, (m/m) basis, oil rigs were up 1.0% and gas down 8.3%. On a year on year, (y/y) comparison, rigs were down 20.9% for oil and down 43.3% for gas. The combined figure for YoY was -24.8% or -261 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 rose have dropped below 1,000 rigs starting in 2015 and landing at 678 this week. Gas rigs bottomed-out at 81 in August 2016 then rose steadily topping out at 110 this week.
For the week ending February 14th, Texas was operating 396 rigs (50.1% of the total), followed by New Mexico with 113, (14.3%), North Dakota with 52, (6.5%). Louisiana had 30 on-land and 22 off-shore, (6.5%). Oklahoma count was 50, (6.3%). These five states together account for 83.9% of the nation’s rig count.
The energy agency now expects oil demand growth to reach 1.1 million barrels per day in 2019 and 1.3 million bpd in 2020, CNBC reported. In its closely watched monthly oil report, the IEA said there was “growing evidence of an economic slowdown” with many large economies reporting weak gross domestic product growth in the first half of the year.
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.