Rig count data for North America, including the United States and Canada.
Rig count data for regions outside of North America (United States and Canada).
Here are some common questions about the Global Rig Count.
The global rig count is a key leading indicator of future oil and natural gas supply. An increase in drilling activity signals future production growth, which can exert downward pressure on both oil and gas prices, especially in regions like North America where many wells produce both oil and associated gas. Looking ahead to 2025, investors should monitor drilling efficiency in North American shale basins, OPEC+ capacity decisions, global LNG demand, and geopolitical risks. If global economic recovery drives energy demand faster than drilling activity resumes, both oil and gas prices may find support.
Historically, North America (especially the US and Canada) has been the most active drilling region, with its shale revolution significantly reshaping the global energy landscape. Additionally, the Middle East (e.g., Saudi Arabia) and Russia are key centers of drilling activity. Investors should watch capital expenditure plans and technological advancements in these regions as they directly impact global supply.
Oil rig count is a critical indicator for forecasting future crude oil supply. An increase in rig count typically signals a rise in production a few months later, potentially putting downward pressure on prices. To analyze the sustainability of this impact, investors should focus on: 1) Drilling vs. Completion Rates: Whether the number of drilled but uncompleted wells (DUCs) is growing, which reflects producers' expectations for future oil prices. 2) Capital Efficiency: The return on capital expenditure and free cash flow status of drilling companies, which determine their ability to continuously invest in new wells. 3) Supply Chain Bottlenecks: Shortages of equipment, labor, and materials can slow the conversion of drilling activity into actual production. 4) Macroeconomics and Policy: The global economic growth outlook, interest rate levels, and energy transition policies all influence the long-term attractiveness of drilling investments.
Besides oil prices, drilling decisions are influenced by capital availability, investor return requirements, operating costs, regulatory environments, and long-term demand expectations. In recent years, with the rise of ESG (Environmental, Social, and Governance) investing, many energy companies face increased pressure to decarbonize, which may also constrain their future drilling activities.
