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Permian Oil Drilling Rig Tally Rises for 2 Consecutive 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, help 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 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) 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 453 for the week through May 14compared with the prior-week figure of 448. The latest tally marked the highest count since April 2020. Moreover, the count has increased for three consecutive weeks. Notably, the current national rig count is above the year-ago level of 339.
The number of onshore rigs for the week ended May 14 totaled 437, higher than the prior count of 434. In offshore resources, 15 rigs were operating, higher than the prior-week count of 13.
US Adds 8 Oil Rigs: Oil rig count was 352 for the week ended May 14 compared with 344 in the week ended May 7. Investors should also note that the current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is also higher than the year-ago figure of 258.
Natural Gas Rig Count Decreases in US: Natural gas rig count of 100 decreased from the prior-week count of 103. The decline in weekly count is the highest since July 2020. But, the count of rigs exploring the commodity was higher than the prior-year week’s 79. Per the latest report, the number of natural gas-directed rigs is almost 93.8% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units versus the prior-week count of 17. But, 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 438 compared favorably with the prior-week level of 431.
Gulf of Mexico (GoM) Rig Count Increases: GoM rig count was 15 units, of which all were oil-directed. The count was higher than the prior-week tally of 13.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 229 versus the prior-week count of 227. Thus, the tally for oil drilling rigs in the basin increased for two consecutive weeks.
Outlook
The price of West Texas Intermediate crude, trading at more than $66 per barrel mark, has improved drastically from the pandemic-hit April last year, when oil was in the negative territory. With coronavirus vaccines being rolled out at a massive scale, the demand for fuel will possibly improve further. This will likely encourage oil and gas drillers to continue adding rigs to shale plays.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if oil price continues to remain healthy — Whiting Petroleum Corporation and Matador Resources Company (MTDR). Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Permian Oil Drilling Rig Tally Rises for 2 Consecutive 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, help 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 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) 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 453 for the week through May 14compared with the prior-week figure of 448. The latest tally marked the highest count since April 2020. Moreover, the count has increased for three consecutive weeks. Notably, the current national rig count is above the year-ago level of 339.
The number of onshore rigs for the week ended May 14 totaled 437, higher than the prior count of 434. In offshore resources, 15 rigs were operating, higher than the prior-week count of 13.
US Adds 8 Oil Rigs: Oil rig count was 352 for the week ended May 14 compared with 344 in the week ended May 7. Investors should also note that the current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is also higher than the year-ago figure of 258.
Natural Gas Rig Count Decreases in US: Natural gas rig count of 100 decreased from the prior-week count of 103. The decline in weekly count is the highest since July 2020. But, the count of rigs exploring the commodity was higher than the prior-year week’s 79. Per the latest report, the number of natural gas-directed rigs is almost 93.8% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units versus the prior-week count of 17. But, 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 438 compared favorably with the prior-week level of 431.
Gulf of Mexico (GoM) Rig Count Increases: GoM rig count was 15 units, of which all were oil-directed. The count was higher than the prior-week tally of 13.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 229 versus the prior-week count of 227. Thus, the tally for oil drilling rigs in the basin increased for two consecutive weeks.
Outlook
The price of West Texas Intermediate crude, trading at more than $66 per barrel mark, has improved drastically from the pandemic-hit April last year, when oil was in the negative territory. With coronavirus vaccines being rolled out at a massive scale, the demand for fuel will possibly improve further. This will likely encourage oil and gas drillers to continue adding rigs to shale plays.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if oil price continues to remain healthy — Whiting Petroleum Corporation and Matador Resources Company (MTDR). Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>