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What is an Active Rig Count?

An active rig count, specifically the Baker Hughes Rig Count, is an official listing of operational oil and gas rigs in a certain area. The list includes both location and functional status of rigs, and can be recorded nationally and/or internationally. It is an important way to gain insight into the quantity of active drilling rigs both on and offshore. 

Where Does the Rig Count Come From?

The short answer is that it comes from a tally of state legislators and petroleum manufacturers. The Baker Hughes Rig Count was established in 1944 when the Hughes Tool Company began taking weekly counts of active rigs in the U.S. and Canada. By comparison, the monthly international rig count began in 1975. With a 70-year history of active and inactive rig counts, Baker Hughes rig counts are reliable for historical analysis. 

The active rig count also keeps track of such data as: drilling costs, well depth, the type and volume of gas produced and production numbers. It’s a business barometer for those who work in the oil and gas industry. 

Why is it Important?

The Baker Hughes Rig Count is a leading indicator for the industry. It tells the willingness of oil and gas companies to keep investing and anticipates a demand for products used in the oil service industry, such as drilling, producing and processing hydrocarbons. Suppliers can use this information to accurately adjust based off of the industry’s anticipated needs. The count helps in price prediction, and because these numbers aren’t based on speculation, they are reliable for oil and gas businesses. 

Of course, outside factors can influence rig count, like oil and gas increases causing the number of active rigs to drop. It’s also a good measure of consumer confidence when it comes to oil. High rig numbers reflect high levels of faith in the industry and mean more related jobs. A decrease in the number of rigs also affects more than investor profits. Each company that works in the oil and gas industry pays attention to rig counts to know how make adjustments. Even those who do not work in the industry can be affected, like landowners who receive mineral rights royalty payments.

What is the Recent Active Rig Count?

Recent numbers show that the active rig count is approximately 9% down from last year in the U.S. Oil and gas exploration has also dropped off. The rig count for Canada, however, is up from recent months but lagging behind last year. Rig counts typically drop this time of year to avoid environmental damage from spring thaw and rain. Weather can have a major effect on rig counts everywhere. The Baker Hughes website provides more information on updated rig counts

Domestic oil and gas work helps to increase our energy independence and position ourselves in the global market. The active rig count contributes to our ability to assess and prepare for changes in the oil and gas environment. 

Tiger General Has You Covered

We’re available to help you get your best pay possible on the oil field, no matter the rig counts. You can count on Tiger General to provide you with the best equipment out there for best results. Fill out the Tiger General Truck Inquiry Form today to get started on bringing your next piece of equipment to where it’s needed most.