According to the most recent data from Baker Hughes, the number of
US rotary rigs drilling for oil declined by 26 last week, bringing the current number of
US rigs drilling for oil to 614. This decline comes on the heels of a four-rig drop just one week prior. Year-on-year oil exploration is down by approximately 61.4 percent. Overall drilling activity has fallen for the fifth straight week, and is down 1,113 rigs lower than levels seen last year.
Sources within the
US domestic and import J55 electric resistance weld (ERW) oil country
tubular goods (OCTG) casing markets say this is hardly good news. Activity continues to be slow and on-the-ground J55 ERW casing continues to be sold at well below replacement cost. Although ex-Midwest mill pricing continues to trend mostly sideways, at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), while futures offer prices from Korean producers remain in the approximate range of 32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck
US Gulf Coast ports, interest in booking tons remains light due to weak demand from the drilling industry.