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Week 24: Where Was the US Offshore Rig Count Headed?

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Weekly rig count

The US offshore rig count in Week 24, which ended June 15, was 20. That’s the same as the previous week and two rigs lower YoY (year-over-year). In Week 23, the offshore rig count rose by one.

The total US rig count (oil and natural gas) was 1,059 in Week 24, down three rigs from the previous week and significantly higher than 933 rigs reported in the same period last year. The total US oil rig count was 863, one rig more than the previous week.

Importance of the rig count

The rig count is the number of rigs that are actively drilling. An increase in the rig count indicates a rise in the demand for drilling activity, while a decrease indicates a fall in demand.

Monthly rig count

In May, the average US offshore rig count was 20, which was four rigs more than 16 in the previous month and two rigs less YoY. The average US rig count (land and offshore) was 1,046, up by 35 rigs from 1,011 in the previous month and by 153 rigs YoY (year-over-year).

A falling rig count suggests that the offshore drilling (IYE) industry may be struggling, and vice versa. The industry outlook also impacts the outlook for companies such as Transocean (RIG), Ensco (ESV), Seadrill (SDRL), Rowan Companies (RDC), and Diamond Offshore Drilling (DO).

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