We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
US Oil & Gas Rig Tally Rises for 2 Straight Weeks: Here's Why
Read MoreHide Full Article
In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count 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 - Free Report) , Schlumberger Limited (SLB - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 500 for the week through Aug 13,higher than the prior-week count of 491. Thus, the tally has increased for two successive weeks, thanks to a massive recovery in oil price. The count is the highest since April 2020. The current national rig count is higher than the year-ago level of 244.
The number of onshore rigs for the week ended Aug 13 totaled 484, higher than the prior-week count of 476. In offshore resources, 14 rigs were operating, in line with the prior-week count.
US Oil Rig Count Increases: Oil rig count was 397 for the week ended Aug 13, higher than the prior-week count of 387. The current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is higher than the year-ago figure of 172.
Natural Gas Rig Count Slips in US: Natural gas rig count of 102 decreased from the prior-week count of 103. The count of rigs exploring the commodity was, however, higher than the prior-year week’s 70. Per the latest report, the number of natural gas-directed rigs is 93.6% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 17 units, higher than the prior-week count of 15. 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 483 compared favorably with the prior-week level of 476.
Gulf of Mexico (GoM) Rig Count Declines: GoM rig count was 13 units, of which all were oil-directed. The count was lower than the prior-week tally of 14.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 244, higher than the prior-week count of 243. The tally for oil drilling rigs in the basin increased in three of the prior four weeks. In the Eagle Ford shale play, the tally for oil drilling rig was 32, higher than 29 in the prior week.
Outlook
The price of West Texas Intermediate crude, trading at more than $65 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 and Earthstone Energy, Inc. . While Whiting Petroleum sports a Zacks Rank # (Strong Buy), Earthstone Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
US Oil & Gas Rig Tally Rises for 2 Straight Weeks: Here's Why
In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count 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 - Free Report) , Schlumberger Limited (SLB - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 500 for the week through Aug 13,higher than the prior-week count of 491. Thus, the tally has increased for two successive weeks, thanks to a massive recovery in oil price. The count is the highest since April 2020. The current national rig count is higher than the year-ago level of 244.
The number of onshore rigs for the week ended Aug 13 totaled 484, higher than the prior-week count of 476. In offshore resources, 14 rigs were operating, in line with the prior-week count.
US Oil Rig Count Increases: Oil rig count was 397 for the week ended Aug 13, higher than the prior-week count of 387. The current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is higher than the year-ago figure of 172.
Natural Gas Rig Count Slips in US: Natural gas rig count of 102 decreased from the prior-week count of 103. The count of rigs exploring the commodity was, however, higher than the prior-year week’s 70. Per the latest report, the number of natural gas-directed rigs is 93.6% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 17 units, higher than the prior-week count of 15. 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 483 compared favorably with the prior-week level of 476.
Gulf of Mexico (GoM) Rig Count Declines: GoM rig count was 13 units, of which all were oil-directed. The count was lower than the prior-week tally of 14.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 244, higher than the prior-week count of 243. The tally for oil drilling rigs in the basin increased in three of the prior four weeks. In the Eagle Ford shale play, the tally for oil drilling rig was 32, higher than 29 in the prior week.
Outlook
The price of West Texas Intermediate crude, trading at more than $65 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 and Earthstone Energy, Inc. . While Whiting Petroleum sports a Zacks Rank # (Strong Buy), Earthstone Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.