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Permian Witnesses Addition of Oil Rigs for 4 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, which is 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) along with 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 411 for the week through Mar 19compared with the prior-week figure of 402. Thus, since January, oil and gas drillers in the United States added the most rigs in a week. However, the current national rig count is below the year-ago level of 772.
The number of onshore rigs for the week ended Mar 19 totaled 398, higher than the prior count of 389. Notably, no rig was being operated in inland waters, same as the prior week. In offshore resources, 13 rigs were operating in line with the prior-week count.
US Adds 9 Oil Rigs: Oil rig count was 318 for the week through Mar 19 compared with 309 in the week ended Mar 12. 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 figure of 664.
Natural Gas Rig Count Flat in US: Natural gas rig count of 92 was flat with the prior-week count. Notably, the count of rigs exploring the commodity was below the prior-year week’s 106. Per the latest report, the number of natural gas-directed rigs is almost 94.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 25 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 386 compared favorably with the prior-week level of 377.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 13 units, of which all were oil-directed. The count was in line with the prior-week tally.
Rig Count in Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 216 versus the prior-week count of 211. Thus, the tally for oil drilling rigs in the basin increased for four weeks in a row. In the Eagle Ford shale play, the tally for oil drilling rigs were 30, higher than 28 in the prior week.
Outlook
Although oil price declined more than 4% on Tuesday on concerns arising from new waves of coronavirusand the slow pace of vaccine rollout in Europe, the price of West Texas Intermediate crude is still significantly higher from the pandemic-lows, when oil was in the negative territory. Notably, the overall outlook still looks bright since the economy is likely to recover strongly this year, once a large mass of population gets vaccinated. Thus, oil and gas drillers are likelyto continueadding rigs to shale plays since the pricing environment has improved drastically.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if the oil price continues to remain healthy — Devon Energy Corporation (DVN - Free Report) and Diamondback Energy Inc. (FANG - Free Report) . While Devon Energy carries a Zacks Rank #3 (Hold), Diamondback has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Permian Witnesses Addition of Oil Rigs for 4 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, which is 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) along with 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 411 for the week through Mar 19compared with the prior-week figure of 402. Thus, since January, oil and gas drillers in the United States added the most rigs in a week. However, the current national rig count is below the year-ago level of 772.
The number of onshore rigs for the week ended Mar 19 totaled 398, higher than the prior count of 389. Notably, no rig was being operated in inland waters, same as the prior week. In offshore resources, 13 rigs were operating in line with the prior-week count.
US Adds 9 Oil Rigs: Oil rig count was 318 for the week through Mar 19 compared with 309 in the week ended Mar 12. 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 figure of 664.
Natural Gas Rig Count Flat in US: Natural gas rig count of 92 was flat with the prior-week count. Notably, the count of rigs exploring the commodity was below the prior-year week’s 106. Per the latest report, the number of natural gas-directed rigs is almost 94.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 25 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 386 compared favorably with the prior-week level of 377.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 13 units, of which all were oil-directed. The count was in line with the prior-week tally.
Rig Count in Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 216 versus the prior-week count of 211. Thus, the tally for oil drilling rigs in the basin increased for four weeks in a row. In the Eagle Ford shale play, the tally for oil drilling rigs were 30, higher than 28 in the prior week.
Outlook
Although oil price declined more than 4% on Tuesday on concerns arising from new waves of coronavirusand the slow pace of vaccine rollout in Europe, the price of West Texas Intermediate crude is still significantly higher from the pandemic-lows, when oil was in the negative territory. Notably, the overall outlook still looks bright since the economy is likely to recover strongly this year, once a large mass of population gets vaccinated. Thus, oil and gas drillers are likelyto continueadding rigs to shale plays since the pricing environment has improved drastically.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if the oil price continues to remain healthy — Devon Energy Corporation (DVN - Free Report) and Diamondback Energy Inc. (FANG - Free Report) . While Devon Energy carries a Zacks Rank #3 (Hold), Diamondback has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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