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.
In its weekly release, Baker Hughes , a GE company, reported an increase in U.S. rig count.
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.
A change in the 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 1057 in the week ended Aug 10, up from 1044 in the previous week. This marked an increase in rig count in four of the last seven weeks.
Despite the rig count slipping to an all-time low of 404 in May 2016, it has been rising rapidly in U.S. shale resources. The current national rig count is considerably higher than the prior-year level of 949.
For the week under review, the rise in rig count can be attributed to increased onshore and offshore operations. The number of onshore rigs totaled 1035, up from 1025. Moreover, the tally for offshore rigs was 20, up from the prior week’s count of 17. The number of rigs operating in the inland waters was two last week, in line with the count for the week ended Aug 3.
Oil Rig Count: Oil rig count was 869, up from 859 for the week ended Aug 3, marking a considerable increase after the count fell by 2 in the prior week.
On top of that, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 768.
Natural Gas Rig Count: The natural gas rig count of 186 surpassed 183 for the week ended Aug 3.
Per the recent report, the number of natural gas-directed rigs is 88.4%, below the all-time high of 1,606 in 2008. However, like oil, the count of rigs exploring gas is above the year-ago tally of 181.
Rig Count by Type: The number of vertical drilling rigs totaled 69 units, up from the prior week tally of 68. 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) rose by 12 units to 988.
Gulf of Mexico (GoM): The GoM rig count is 18 units, of which 15 were oil-directed. The count is higher than the tally of 16 for the week ended Aug 3.
Conclusion
The number of rigs exploring in the United States surged primarily due to the addition of six oil rigs in the crowded Permian basin. Haynesville shale play witnessed the inclusion of two natural gas rigs and Utica play has one natural gas rig.
West Texas Intermediate (WTI) crude is again approaching the $70-a-barrel psychological mark. Although the pricing scenario of oil is favorable for drillers, the production possibilities in the domestic shale plays — especially the Permian — remain dull owing to the pipeline bottleneck problem. In other words, the bottleneck in transportation capacity and labor shortage have made Permian operations expensive.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Permian Adds 6 Oil Drilling Rigs Despite Bottleneck Concern
In its weekly release, Baker Hughes , a GE company, reported an increase in U.S. rig count.
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.
A change in the 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 1057 in the week ended Aug 10, up from 1044 in the previous week. This marked an increase in rig count in four of the last seven weeks.
Despite the rig count slipping to an all-time low of 404 in May 2016, it has been rising rapidly in U.S. shale resources. The current national rig count is considerably higher than the prior-year level of 949.
For the week under review, the rise in rig count can be attributed to increased onshore and offshore operations. The number of onshore rigs totaled 1035, up from 1025. Moreover, the tally for offshore rigs was 20, up from the prior week’s count of 17. The number of rigs operating in the inland waters was two last week, in line with the count for the week ended Aug 3.
Oil Rig Count: Oil rig count was 869, up from 859 for the week ended Aug 3, marking a considerable increase after the count fell by 2 in the prior week.
On top of that, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 768.
Natural Gas Rig Count: The natural gas rig count of 186 surpassed 183 for the week ended Aug 3.
Per the recent report, the number of natural gas-directed rigs is 88.4%, below the all-time high of 1,606 in 2008. However, like oil, the count of rigs exploring gas is above the year-ago tally of 181.
Rig Count by Type: The number of vertical drilling rigs totaled 69 units, up from the prior week tally of 68. 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) rose by 12 units to 988.
Gulf of Mexico (GoM): The GoM rig count is 18 units, of which 15 were oil-directed. The count is higher than the tally of 16 for the week ended Aug 3.
Conclusion
The number of rigs exploring in the United States surged primarily due to the addition of six oil rigs in the crowded Permian basin. Haynesville shale play witnessed the inclusion of two natural gas rigs and Utica play has one natural gas rig.
West Texas Intermediate (WTI) crude is again approaching the $70-a-barrel psychological mark. Although the pricing scenario of oil is favorable for drillers, the production possibilities in the domestic shale plays — especially the Permian — remain dull owing to the pipeline bottleneck problem. In other words, the bottleneck in transportation capacity and labor shortage have made Permian operations expensive.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>