US Offshore Rig Count Fell by Two in Week 30

Weekly rig count

The US offshore rig count in Week 30, which ended July 27, was 16, one less than the previous week and eight less YoY (year-over-year).

US Offshore Rig Count Fell by Two in Week 30

The total US rig count (oil and natural gas) was 1,048 in Week 30, up two rigs from the previous week and significantly higher than the 958 rigs reported in the same period last year. The total US oil rig count was 861, which was three 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 rig count indicates a rise in the demand for drilling activity, while a decrease indicates a fall in demand.

Monthly rig count

In June, the average US offshore rig count was 19, which was one less than the previous month and three less YoY. The average US rig count (land and offshore) was 1,056, up ten rigs from 1,046 in the previous month and up 125 rigs YoY. The international offshore rig count in June was 195 compared to 198 in the previous month and 197 in June 2017. The worldwide offshore rig count fell to 217 in June 2018 from 221 in the previous month.

A falling rig count suggests that the offshore drilling (IYE) industry may be struggling. 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).