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Permian Basin Oil Rig Count Decreases for 3 Straight Weeks
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In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was lower 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 Declines: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 762 for the week ended Aug 19. The figure is lower thanthe prior week’s count of 763. Thus, for three consecutive weeks, the count has decreased. The current national rig count, however, is higher than the year-ago level of 503.
The onshore rigs in the week ended Aug 19 totaled 741 compared with the prior week’s count of 742. In offshore resources, 18 rigs were operating, in line with the prior-week count.
U.S. Oil Rig Count Flat: Oil rig count was 601 for the week ended Aug 19, in line with the prior week’s figure. 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 405.
U.S. Natural Gas Rig Count Falls: Natural gas rig count of 159 was lower than the prior-week figure of 160. The count of rigs exploring the commodity is higher than the prior-year week’s tally of 97. Per the latest report, the number of natural gas-directed rigs is 90.1% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 29 units, lower than the prior-week count of 31. 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 733 compared favorably with the prior-week level of 732.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 16 units, all oil-directed. The count was flat 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 342, lower than the prior week's count of 343. Thus, the tally has decreased for three straight weeks.
Outlook
The West Texas Intermediate crude price is trading higher than the $90-per-barrel mark, which is extremely favorable for exploration and production activities. 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 currently carrying a Zacks Rank #3 (Hold), is well-placed to capitalize on the promising business scenario. EOG has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, the company has returned roughly $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 Continental Resources 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 seven days. Considering the price chart, #3 Ranked Continental Resources has gained 86.1% in the past year, outpacing the 75.7% rise of the composite stocks belonging to the sector.
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Permian Basin Oil Rig Count Decreases for 3 Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) reported that the U.S. rig count was lower 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 Declines: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 762 for the week ended Aug 19. The figure is lower thanthe prior week’s count of 763. Thus, for three consecutive weeks, the count has decreased. The current national rig count, however, is higher than the year-ago level of 503.
The onshore rigs in the week ended Aug 19 totaled 741 compared with the prior week’s count of 742. In offshore resources, 18 rigs were operating, in line with the prior-week count.
U.S. Oil Rig Count Flat: Oil rig count was 601 for the week ended Aug 19, in line with the prior week’s figure. 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 405.
U.S. Natural Gas Rig Count Falls: Natural gas rig count of 159 was lower than the prior-week figure of 160. The count of rigs exploring the commodity is higher than the prior-year week’s tally of 97. Per the latest report, the number of natural gas-directed rigs is 90.1% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 29 units, lower than the prior-week count of 31. 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 733 compared favorably with the prior-week level of 732.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 16 units, all oil-directed. The count was flat 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 342, lower than the prior week's count of 343. Thus, the tally has decreased for three straight weeks.
Outlook
The West Texas Intermediate crude price is trading higher than the $90-per-barrel mark, which is extremely favorable for exploration and production activities. 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 currently carrying a Zacks Rank #3 (Hold), is well-placed to capitalize on the promising business scenario. EOG has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, the company has returned roughly $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 Continental Resources 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 seven days. Considering the price chart, #3 Ranked Continental Resources has gained 86.1% in the past year, outpacing the 75.7% rise of the composite stocks belonging to the sector.