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In its weekly release, Baker Hughes , a GE company, reported an increase in total rig count in the United States.
About the Rig Count
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.
Change in this Houston-based oilfield services player’s rotary rig count impacts demand for energy services like drilling, completion and production provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) , Diamond Offshore Drilling, Inc. (DO - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Weekly Summary: Rigs engaged in the exploration and production of oil and natural gas in the United States totaled 995 in the week (ended Mar 23) — higher than the prior week’s 990. Notably, total count increased seven times in the last nine weeks.
Since it slipped to an all-time low of 404 in May 2016, rig count has been rising rapidly in U.S. shale resources. Punctuated by a few pauses, the current nationwide rig count is considerably higher than the prior-year level of 809.
For the week in discussion, the rise in rig count can be attributed to higher onshore operations. The number of onshore rigs totaled 979, higher than 973.
Three rigs operated in the inland waters last week, down from four for the week ended Mar 16. The tally for offshore rigs was flat at 13.
Oil Rig Count: Oil rig count rose to 804 from 800 for the week ended Mar 16. Moreover, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 652. The oil rig count rose eight times in the last nine weeks.
Natural Gas Rig Count: The natural gas rig count of 190 was up from 189 for the week ended Mar 16. With this, the tally increased six times in nine weeks.
Moreover, like oil, the count of rigs exploring gas is above the year-ago tally of 155.
Per the recent report, the number of natural gas-directed rigs is 88.2% below the all-time high of 1,606 achieved in late summer 2008.
Rig Count by Type: The number of vertical drilling rigs of 63 units increased from 57 units. However, the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) fell by a unit to 932 units.
Gulf of Mexico (GoM): The GoM rig count is at 13 units — 12 of which were oil-directed — in line with the tally for the week ended Mar 16.
Conclusion
The number of total rigs exploring in the United States increased, courtesy of the addition of seven oil rigs in the Permian basin.
West Texas Intermediate crude has crossed the $65-per-barrel mark, thanks to Middle East tensions and the projection of Khalid al-Falih — energy minister of Saudi Arabia — that the production cut accord could get extended till 2019. Hence, we believe that there is considerable opportunity for U.S. shale players to continue ramping up drilling activities.
Two energy stocks that should make valuable additions to your portfolio are Continental Resources, Inc. and Concho Resources Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Oklahoma City, OK, Continental is primarily an upstream energy player. We expect the company to witness year-over-year earnings growth of 323.5% in 2018.
Headquartered in Midland, TX, Concho explores oil and gas resources in the prospective plays. The company is likely to witness year-over-year earnings growth of 73.2% in 2018.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Permian Basin Witnesses More Oil Drilling Rigs
In its weekly release, Baker Hughes , a GE company, reported an increase in total rig count in the United States.
About the Rig Count
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.
Change in this Houston-based oilfield services player’s rotary rig count impacts demand for energy services like drilling, completion and production provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) , Diamond Offshore Drilling, Inc. (DO - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Weekly Summary: Rigs engaged in the exploration and production of oil and natural gas in the United States totaled 995 in the week (ended Mar 23) — higher than the prior week’s 990. Notably, total count increased seven times in the last nine weeks.
Since it slipped to an all-time low of 404 in May 2016, rig count has been rising rapidly in U.S. shale resources. Punctuated by a few pauses, the current nationwide rig count is considerably higher than the prior-year level of 809.
For the week in discussion, the rise in rig count can be attributed to higher onshore operations. The number of onshore rigs totaled 979, higher than 973.
Three rigs operated in the inland waters last week, down from four for the week ended Mar 16. The tally for offshore rigs was flat at 13.
Oil Rig Count: Oil rig count rose to 804 from 800 for the week ended Mar 16. Moreover, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 652. The oil rig count rose eight times in the last nine weeks.
Natural Gas Rig Count: The natural gas rig count of 190 was up from 189 for the week ended Mar 16. With this, the tally increased six times in nine weeks.
Moreover, like oil, the count of rigs exploring gas is above the year-ago tally of 155.
Per the recent report, the number of natural gas-directed rigs is 88.2% below the all-time high of 1,606 achieved in late summer 2008.
Rig Count by Type: The number of vertical drilling rigs of 63 units increased from 57 units. However, the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) fell by a unit to 932 units.
Gulf of Mexico (GoM): The GoM rig count is at 13 units — 12 of which were oil-directed — in line with the tally for the week ended Mar 16.
Conclusion
The number of total rigs exploring in the United States increased, courtesy of the addition of seven oil rigs in the Permian basin.
West Texas Intermediate crude has crossed the $65-per-barrel mark, thanks to Middle East tensions and the projection of Khalid al-Falih — energy minister of Saudi Arabia — that the production cut accord could get extended till 2019. Hence, we believe that there is considerable opportunity for U.S. shale players to continue ramping up drilling activities.
Two energy stocks that should make valuable additions to your portfolio are Continental Resources, Inc. and Concho Resources Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Oklahoma City, OK, Continental is primarily an upstream energy player. We expect the company to witness year-over-year earnings growth of 323.5% in 2018.
Headquartered in Midland, TX, Concho explores oil and gas resources in the prospective plays. The company is likely to witness year-over-year earnings growth of 73.2% in 2018.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>