US and Canada Drilling Rigs Rise

Weekly oil and gas drilling activity in the United States and Canada both increased, according to the latest data from GN auto stocks/energy-stocks: drilling activity. The total number of active U.S. rigs climbed by three to reach 591, placing the figure just two rigs below the 17-month high set in mid-August. This level of activity is substantially higher than the same period last year, with 52 more rigs currently in operation.

In Canada, the rig count rose by three to a total of 207. While this is slightly below the five-month high of 219 recorded just one month ago, the current number remains 21 rigs above the level seen in the same week of 2025. The international active rig count for August was also updated, totaling 1,102 rigs, which is six higher than July and 26 higher than the same month last year.

North American Rig Counts Rise

The increase in North American drilling activity reflects a sustained upward trend in exploration and production efforts. The U.S. market continues to expand its operational capacity, with the current rig count significantly outpacing year-ago figures. This growth indicates that operators are committing to increased output, a move that directly influences the volume of equipment required for new well construction and maintenance.

Canadian operators are also maintaining elevated activity levels, with the recent weekly gain keeping the total well above the five-month peak observed in the previous month. The consistency of the rig count over recent weeks suggests that drilling programs are being sustained rather than just temporarily spiked. This stability provides a clearer picture of the operational tempo in the region, which is critical for supply chain planning.

Steel Tubular Demand Indicator

Rig count data serves as a leading indicator for the demand of oil country tubular goods (OCTG), a primary end market for steel sheet. As the number of active rigs increases, the requirement for new tubular components for drilling and completion operations rises correspondingly. This direct link means that the recent increases in U.S. and Canadian rig counts point to upcoming growth in steel consumption for the energy sector.

The international rig count, which stood at 1,102 in August, further underscores the global scale of this activity. The fact that this figure is higher than both the previous month and the same period last year indicates a broadening trend in drilling operations. For steel producers, this sustained increase in rig activity across multiple geographies suggests a robust and growing demand pipeline for OCTG products in the near term.

Year Over Year Comparison

When compared to the same week in 2025, the current rig counts in both the U.S. and Canada show significant growth. The U.S. has 52 more rigs active, while Canada has 21 more. This year-over-year expansion highlights a structural increase in drilling capacity rather than a temporary fluctuation. The data suggests that the energy sector is operating at a higher baseline of activity than it did a year ago, which has long-term implications for the materials supply chain.

The monthly international count also reflects this positive year-over-year trend, with August showing 26 more rigs than the same month in the previous year. This consistency across different timeframes and geographies reinforces the signal of increasing drilling activity. For businesses involved in the production and supply of drilling equipment, these figures provide a concrete basis for forecasting higher demand for steel-based tubular goods in the coming quarters.