In its monthly release, oilfield services provider, Baker Hughes Inc.'s worldwide Rotary Rig Count for Jun 2014 was 3,437, up 66 from 3,371 counted in May 2014, and up 160 from 3,277 counted in June 2013.
The Baker Hughes Rotary Rig Counts gives the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. The Baker Hughes’ rotary rig counts, issued since 1944, acts as an important yardstick for drilling contractors like Helmerich & Payne, Inc. (HP - Free Report) and Patterson-UTI Energy Inc. (PTEN - Free Report) in gauging the overall business environment of the oil and gas industry. Baker Hughes initiated the monthly international rig count in 1975.
Analysis of Monthly Data
International: Rigs engaged in exploration and production globally totaled 1,336 in Jun 2014. This was down 14 from 1,350 counted in May 2014, and up 3 from 1,333 counted in Jun 2013. The international offshore rig count for Jun 2014 was 314, down 12 from 326 counted in May 2014, and 23 from 337 counted in Jun 2013.
North America: North American rigs engaged in exploration and production totaled 2,101 in Jun 2014. This was up 80 from 2,021 counted in May 2014, and 157 from 1,944 counted in Jun 2013. Rigs engaged in land operations rose by 80 to 2,041 from 1,961 in May 2014 and by 153 from 1,888 in Jun 2013. The North American offshore rig count for Jun 2014 was 60 flat with May 2014 and up 4 from 56 counted in Jun 2013.
The average U.S. rig count for Jun 2014 was 1,861, up 2 from 1,859 counted in May 2014, and up 100 from 1,761 counted in Jun 2013. The average Canadian rig count for Jun 2014 was 240, up 78 from 162 counted in May 2014, and up 57 from 183 counted in Jun 2013.
A Key Barometer of Drilling Activity: An increase or decrease in the Baker Hughes rotary rig count heavily weighs on the demand for energy services – drilling, completion, production etc. Our preferred pick in this group is Flotek Industries Inc. (FTK - Free Report) . The Houston, TX-based firm – sporting a Zacks Rank #1 (Strong Buy) – has a solid secular growth story with potential to rise significantly from the current level.