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Permian Basin Adds Oil Drilling Rigs for 3 Straight Weeks
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In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count.
More on 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 service player’s rotary rig count affects demand for energy services like drilling, completion and production, provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 269 in the week through Oct 9 versus the prior-week count of 266. Thus, for the first time since June 2018, the tally increased for four straight weeks. This is because drillers are slowly ramping up activities with oil prices around $40 per barrel. The current national rig count is, however, below the year-ago level’s 856.
The number of onshore rigs in the week ending Oct 9 totaled 254, higher than the prior-week count of 251. Notably, the count of rigs operating in the inland waters was one, same as the prior-week tally. Moreover, in the offshore resources, 14 rigs were operating, also flat with the prior-week count.
US Adds 4 Oil Rigs: Oil rig count was 193 in the week through Oct 9, compared with 189 in the week ended Oct 2. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is, however, below the year-ago 712.
Natural Gas Rig Count Falls in US: The natural gas rig count of 73 was lower than the prior-week count of 74. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 143. Importantly, per the latest report, the number of natural gas-directed rigs is 95.5% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units, lower than the prior-week count of 16. However, the 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 254 was higher than the prior-week level of 250.
Gulf of Mexico (GoM) Rig Count Flat: The GoM rig count is 14 units, of which all were oil-directed. The count was in line with the prior-week level.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — saw its weekly oil rig tally of 129, higher than the prior-week count of 128. Thus, the basin adds oil drilling rigs for three straight weeks. In Eagle Ford, drillers added one oil rig in the week through Oct 9.
Outlook
With oil prices recovering rapidly – the West Texas Intermediate (WTI) crude has improved more than 246% since late April – as economies are reopening, most analysts opine that drillers will continue to add rigs.
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Permian Basin Adds Oil Drilling Rigs for 3 Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count.
More on 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 service player’s rotary rig count affects demand for energy services like drilling, completion and production, provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 269 in the week through Oct 9 versus the prior-week count of 266. Thus, for the first time since June 2018, the tally increased for four straight weeks. This is because drillers are slowly ramping up activities with oil prices around $40 per barrel. The current national rig count is, however, below the year-ago level’s 856.
The number of onshore rigs in the week ending Oct 9 totaled 254, higher than the prior-week count of 251. Notably, the count of rigs operating in the inland waters was one, same as the prior-week tally. Moreover, in the offshore resources, 14 rigs were operating, also flat with the prior-week count.
US Adds 4 Oil Rigs: Oil rig count was 193 in the week through Oct 9, compared with 189 in the week ended Oct 2. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is, however, below the year-ago 712.
Natural Gas Rig Count Falls in US: The natural gas rig count of 73 was lower than the prior-week count of 74. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 143. Importantly, per the latest report, the number of natural gas-directed rigs is 95.5% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units, lower than the prior-week count of 16. However, the 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 254 was higher than the prior-week level of 250.
Gulf of Mexico (GoM) Rig Count Flat: The GoM rig count is 14 units, of which all were oil-directed. The count was in line with the prior-week level.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — saw its weekly oil rig tally of 129, higher than the prior-week count of 128. Thus, the basin adds oil drilling rigs for three straight weeks. In Eagle Ford, drillers added one oil rig in the week through Oct 9.
Outlook
With oil prices recovering rapidly – the West Texas Intermediate (WTI) crude has improved more than 246% since late April – as economies are reopening, most analysts opine that drillers will continue to add rigs.
Meanwhile, investors may keep an eye on two energy stocks which are expected to benefit if the oil price rally sustains – Devon Energy Corporation (DVN - Free Report) and Diamondback Energy Inc. (FANG - Free Report) . Both the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>