The Baker Hughes Rig Count – The Barometer for the Oil & Gas Industry

Like many businesses, electrical distributors located in specific regions of the country are key suppliers to the oil & gas sector. From the North Slope of Alaska down to the Eagle Ford Shale Play in South Texas, the energy industry can be a significant market driver within the electrical supply chain. With recent declines in demand due to the COVID-19 pandemic, along with the Saudi-Russia price war, the oil & gas industry has seen a historic price collapse leading to projects and rig activity being suspended. For electrical distributors and other suppliers, these suspensions in drilling and production have created high levels of uncertainty.

 

If history tells us anything, a light at the end of the tunnel will emerge. At some point, energy markets and the global economy will come roaring back. Having a thumb on the pulse of what energy producers are doing can be the difference between serving your oil & gas customers or missing out on potential opportunities when things ramp up again.

 

A trusted source of information for the energy supply chain is the Baker Hughes Rig Count. Housed within the Baker Hughes website, you’ll find several tables and spreadsheets that break down drilling activity by region, state, and other criteria. Becoming familiar with these free resources can provide actionable insights into drilling activity that can be used in planning initiatives centered around selling to and servicing your oil & gas customers.

 

Since being launched in 1944, the Baker Hughes Rig Count has been an important business barometer for the drilling industry and its suppliers. When drilling rigs are active, they consume products supplied by the oilfield service industry and its supply chain partners (including electrical distributors). The active rig count serves as a leading indicator of demand for products used in drilling, completing, producing, and processing hydrocarbons. The Baker Hughes Rig Count is shared and published by major newspapers and trade publications. It is frequently referred to by journalists, economists, security analysts, and government officials. The North American rig count is released weekly at 10:00 a.m. Eastern time on the last day of the workweek.

 

Combined with some basic knowledge of typical workflows that occur within oil & gas projects, familiarizing yourself with the Baker Hughes Rig Count can help your electrical distributor anticipate the needs of oil & gas customers and potentially unlock opportunities.

 

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