In its weekly release,
Baker Hughes Company ( BKR Quick Quote BKR - Free Report) reported that the U.S. rig count increased from the prior week. 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 impacts demand for energy services like drilling completion and production, provided by the likes of
Halliburton Company ( HAL Quick Quote HAL - Free Report) , Schlumberger Limited ( SLB Quick Quote SLB - Free Report) and Transocean Ltd. ( RIG Quick Quote RIG - Free Report) . Details The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 475 for the week through Jul 2,higher than the prior-week count of 470. Thus, the tally has increased in three of the past four weeks, thanks to massively improving oil price. Also, the count is the highest since April 2020. Notably, the current national rig count is higher than the year-ago level of 263. Total US Rig Count Rises:
The number of onshore rigs for the week ended Jul 2 totaled 459, higher than the prior-week count of 454. Notably, in offshore resources, 14 rigs were operating, in line with the prior-week count.
Oil rig count was 376 for the week ended Jul 2, higher than the prior-week count of 372. 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 185. US Oil Rig Count Increases: Natural gas rig count of 99 increased from the prior-week count of 98. Moreover, the count of rigs exploring the commodity was higher than the prior-year week’s 76. Per the latest report, the number of natural gas-directed rigs is almost 94% below the all-time high of 1,606 recorded in 2008. Natural Gas Rig Count Surges in US: The number of vertical drilling rigs totaled 16 units, lower than the prior-week count of 19. However, 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 459 compared favorably with the prior-week level of 451. Rig Count by Type: GoM rig count was 14 units, of which all were oil-directed. The count was in line with the prior-week tally. Gulf of Mexico (GoM) Rig Count In Line: Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 237, higher than the prior-week count of 236. Importantly, the tally for oil drilling rigs in the basin increased in four of the prior six weeks. In DJ-Niobrara, the tally for oil drilling rigs increased to 11 from the prior count of nine.
The price of West Texas Intermediate crude, trading at more than $75 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 has paved the way for further rig additions although drilling activities have slowed down as upstream players are focusing mainly on stockholder returns rather than boosting output.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if oil price continues to stay healthy —
Whiting Petroleum Corporation ( WLL Quick Quote WLL - Free Report) and Earthstone Energ y, Inc. ( ESTE Quick Quote ESTE - Free Report) . While Whiting Petroleum sports a Zacks Rank #1 (Strong Buy), Earthstone Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Time to Invest in Legal Marijuana
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