What the rig count measures and where the number comes from, in plain terms.
The rig count is one of the most frequently quoted numbers in the oilfield. Here is what it measures and where the figure comes from.
What it is
The rig count is the number of drilling rigs actively drilling wells in a given area at a given time. It is a measure of drilling activity, not of production or of completed wells.
Where the number comes from
The most widely cited figure is the Baker Hughes rig count. Baker Hughes has published rig counts for decades and updates the count weekly, typically on Fridays. The report breaks the numbers out by region, including the Permian Basin, and by whether a rig is drilling for oil or for natural gas.
What it does and does not capture
The rig count reflects rigs that are actively drilling. On its own, it does not capture:
- Completions. After a well is drilled, it still has to be hydraulically fractured and brought online by a separate crew. The rig count does not measure that work.
- Drilled-but-uncompleted wells (DUCs). Wells can be drilled and then left uncompleted until later, so drilling and new production do not always move together.
- Efficiency. Modern rigs drill more feet and more wells per rig than in the past, so a given number of rigs represents more drilling than the same number did years ago.
Where to find it
Baker Hughes publishes the rig count on its website each week. We link to it, along with other industry tools, on our resources page.