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Oil & Gas Drillers Add Highest Rig in US Since 2020 Begining
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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
The company’s 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 the 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 282 in the week through Oct 16 versus the prior-week count of 269. Thus, since January, the tally has risen the most. This is because drillers have been adding rigs as the price of crude has recovered partially with the commodity price hovering around $40 per barrel. Notably, the count increased for five successive weeks. The current national rig count is, however, below the year-ago level’s 851.
The number of onshore rigs in the week ending Oct 16 totaled 267, higher than the prior-week count of 254. Notably, the count of rigs operating in the inland waters was one, the same as the prior-week figure. Moreover, in the offshore resources, 14 rigs were operating, flat with the prior-week count.
US Adds 12 Oil Rigs: Oil rig count was 205 in the week through Oct 16 compared with 193 in the week ended Oct 9. Importantly, since January, the count has increased the most. Investors should also note that the current count of oil rigs, far from the peak of 1,609 attained in October 2014, is, however, below the year-ago figure of 713.
Natural Gas Rig Count Rises in US: The natural gas rig count of 74 was higher than the prior-week count of 73. But, the count of rigs exploring the commodity was lower than the prior-year week’s 137. Importantly, per the latest report, the tally of natural gas-directed rigs is 95.4% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 21 units, higher than the prior-week count of 15. Moreover, 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 261 was higher than the prior-week level of 254.
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 count.
Rig Count in Prolific Basins
Eagle Ford, among the prolific basins in the United States, saw its weekly oil rig figure of 15, higher than the prior-week count of 12. Oil drillers in the Permian — the most prolific basin in the United States — hadn’t added any rigs in the week through Oct 16.
Outlook
With oil prices recovering rapidly —the West Texas Intermediate (WTI) crude has improved more than 253% since late April —as economies are reopening, most analysts opine that drillers will continue to add rigs.
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With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
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Oil & Gas Drillers Add Highest Rig in US Since 2020 Begining
In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count.
More on the Rig Count
The company’s 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 the 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 282 in the week through Oct 16 versus the prior-week count of 269. Thus, since January, the tally has risen the most. This is because drillers have been adding rigs as the price of crude has recovered partially with the commodity price hovering around $40 per barrel. Notably, the count increased for five successive weeks. The current national rig count is, however, below the year-ago level’s 851.
The number of onshore rigs in the week ending Oct 16 totaled 267, higher than the prior-week count of 254. Notably, the count of rigs operating in the inland waters was one, the same as the prior-week figure. Moreover, in the offshore resources, 14 rigs were operating, flat with the prior-week count.
US Adds 12 Oil Rigs: Oil rig count was 205 in the week through Oct 16 compared with 193 in the week ended Oct 9. Importantly, since January, the count has increased the most. Investors should also note that the current count of oil rigs, far from the peak of 1,609 attained in October 2014, is, however, below the year-ago figure of 713.
Natural Gas Rig Count Rises in US: The natural gas rig count of 74 was higher than the prior-week count of 73. But, the count of rigs exploring the commodity was lower than the prior-year week’s 137. Importantly, per the latest report, the tally of natural gas-directed rigs is 95.4% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 21 units, higher than the prior-week count of 15. Moreover, 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 261 was higher than the prior-week level of 254.
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 count.
Rig Count in Prolific Basins
Eagle Ford, among the prolific basins in the United States, saw its weekly oil rig figure of 15, higher than the prior-week count of 12. Oil drillers in the Permian — the most prolific basin in the United States — hadn’t added any rigs in the week through Oct 16.
Outlook
With oil prices recovering rapidly —the West Texas Intermediate (WTI) crude has improved more than 253% 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 Pioneer Natural Resources Company (PXD - Free Report) . Both stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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