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In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was higher than the prior-week tally. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
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. The number of active rigs and its comparison with the prior-week figure indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 752 for the week ended Jul 8. The figure is higher than the prior week’s count of 750. The current national rig count is higher than the year-ago level of 479.
The onshore rigs in the week ended Jul 8 totaled 731 compared with the prior week’s count of 730. In offshore resources, 17 rigs were operating, in line with the prior-week count.
U.S. Oil Rig Count Rises: Oil rig count was 597 for the week ended Jul 8, higher than the prior week’s figure of 595. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 378.
U.S. Natural Gas Rig Count Flat: Natural gas rig count of 153 was in line with the prior-week figure. The count of rigs exploring the commodity is higher than the prior-year week’s tally of 101. Per the latest report, the number of natural gas-directed rigs is 90.5% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 27 units, higher than the prior-week count of 25. 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 725 was in line with the prior-week level.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 16 units, all oil-directed. The count was in line with the prior-week number.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 349, higher than the prior week's count of 348. In the Granite Wash, the tally for weekly oil drilling rigs was three, higher than the prior-week count of two.
Outlook
The West Texas Intermediate crude price is trading higher than the $100-per-barrel mark, reflecting a massive improvement in the past year. Higher oil prices will likely pave the way for rig additions despite a slowdown in drilling activities as upstream players mainly focus on stockholder returns rather than boosting output.
Meanwhile, investors may keep a close eye on energy stocks like EOG Resources (EOG - Free Report) and Continental Resources, Inc. . The companies are expected to benefit from the current healthy oil price scenario.
EOG Resources, a leading oil and natural gas exploration and production company carrying a Zacks Rank #3 (Hold), is well placed to capitalize on the crude rally. EOG has estimated roughly 11,500 net undrilled premium locations, resulting in a brightened production outlook. In the Eagle Ford shale play alone, EOG identified 1,900 undrilled premium locations, while in the prolific Delaware Basin, the upstream firm identified 6,300 drilling sites.
EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, EOG Resources has returned more than $10 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of the company are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. CLR — currently carrying a Zacks Rank #2 (Buy) — is likely to see earnings growth of 161.6% this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Permian Basin & Granite Wash Crude Oil Rig Count Increases
In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was higher than the prior-week tally. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
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. The number of active rigs and its comparison with the prior-week figure indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 752 for the week ended Jul 8. The figure is higher than the prior week’s count of 750. The current national rig count is higher than the year-ago level of 479.
The onshore rigs in the week ended Jul 8 totaled 731 compared with the prior week’s count of 730. In offshore resources, 17 rigs were operating, in line with the prior-week count.
U.S. Oil Rig Count Rises: Oil rig count was 597 for the week ended Jul 8, higher than the prior week’s figure of 595. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 378.
U.S. Natural Gas Rig Count Flat: Natural gas rig count of 153 was in line with the prior-week figure. The count of rigs exploring the commodity is higher than the prior-year week’s tally of 101. Per the latest report, the number of natural gas-directed rigs is 90.5% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 27 units, higher than the prior-week count of 25. 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 725 was in line with the prior-week level.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 16 units, all oil-directed. The count was in line with the prior-week number.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 349, higher than the prior week's count of 348. In the Granite Wash, the tally for weekly oil drilling rigs was three, higher than the prior-week count of two.
Outlook
The West Texas Intermediate crude price is trading higher than the $100-per-barrel mark, reflecting a massive improvement in the past year. Higher oil prices will likely pave the way for rig additions despite a slowdown in drilling activities as upstream players mainly focus on stockholder returns rather than boosting output.
Meanwhile, investors may keep a close eye on energy stocks like EOG Resources (EOG - Free Report) and Continental Resources, Inc. . The companies are expected to benefit from the current healthy oil price scenario.
EOG Resources, a leading oil and natural gas exploration and production company carrying a Zacks Rank #3 (Hold), is well placed to capitalize on the crude rally. EOG has estimated roughly 11,500 net undrilled premium locations, resulting in a brightened production outlook. In the Eagle Ford shale play alone, EOG identified 1,900 undrilled premium locations, while in the prolific Delaware Basin, the upstream firm identified 6,300 drilling sites.
EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, EOG Resources has returned more than $10 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of the company are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. CLR — currently carrying a Zacks Rank #2 (Buy) — is likely to see earnings growth of 161.6% this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.