We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Permian Oil Drilling Rig Count Rises for Two Straight Weeks
Read MoreHide Full Article
In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was higher than the prior-week tally. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the prior-week figure indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 769 for the week ended Oct 14. The figure is higher thanthe prior week’s count of 762. Thus, the tally increased in four of the prior five weeks. The current national rig count is higher than the year-ago level of 543.
The onshore rigs in the week ended Oct 14 totaled 752, higher than the prior-week count of 746. In offshore resources, 14 rigs were operating, higher than the prior-week count of 13.
U.S. Oil Rig Count Rises: Oil rig count was 610 for the week ended Oct 14, higher than the prior week’s figure of 602. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 445.
U.S. Natural Gas Rig Count Falls: Natural gas rig count of 157 was lower than the prior-week figure of 158. The count of rigs exploring the commodity is, however, higher than the prior-year week’s tally of 98. Per the latest report, the number of natural gas-directed rigs is 90.2% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 23 units, in line with the prior-week count. Horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 746 is higher than the prior-week level of 739.
Gulf of Mexico (GoM) Rig Count Rises: GoM rig count was 13 units, all oil-directed. The count was higher than the prior-week number of 12.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 341, higher than the prior week's count of 340. The tally increased for two straight weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is still extremely favorable for exploration and production activities. Solid oil prices will likely pave the way for further rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.
Investors may keep a close eye on energy stocks like EOG Resources (EOG - Free Report) and Continental Resources, Inc. , as these companies are expected to benefit from the current healthy oil price scenario.
EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since it transitioned to premium drilling, the company has returned roughly $10 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. Its oil inventories are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 in the past seven days. The Zacks Rank #3 firm has gained 43.9% in the past year, outpacing the 31.8% rise of the composite stocks belonging to the industry.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Permian Oil Drilling Rig Count Rises for Two Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was higher than the prior-week tally. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the prior-week figure indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 769 for the week ended Oct 14. The figure is higher thanthe prior week’s count of 762. Thus, the tally increased in four of the prior five weeks. The current national rig count is higher than the year-ago level of 543.
The onshore rigs in the week ended Oct 14 totaled 752, higher than the prior-week count of 746. In offshore resources, 14 rigs were operating, higher than the prior-week count of 13.
U.S. Oil Rig Count Rises: Oil rig count was 610 for the week ended Oct 14, higher than the prior week’s figure of 602. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 445.
U.S. Natural Gas Rig Count Falls: Natural gas rig count of 157 was lower than the prior-week figure of 158. The count of rigs exploring the commodity is, however, higher than the prior-year week’s tally of 98. Per the latest report, the number of natural gas-directed rigs is 90.2% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 23 units, in line with the prior-week count. Horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 746 is higher than the prior-week level of 739.
Gulf of Mexico (GoM) Rig Count Rises: GoM rig count was 13 units, all oil-directed. The count was higher than the prior-week number of 12.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 341, higher than the prior week's count of 340. The tally increased for two straight weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is still extremely favorable for exploration and production activities. Solid oil prices will likely pave the way for further rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.
Investors may keep a close eye on energy stocks like EOG Resources (EOG - Free Report) and Continental Resources, Inc. , as these companies are expected to benefit from the current healthy oil price scenario.
EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since it transitioned to premium drilling, the company has returned roughly $10 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. Its oil inventories are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 in the past seven days. The Zacks Rank #3 firm has gained 43.9% in the past year, outpacing the 31.8% rise of the composite stocks belonging to the industry.