In its weekly release,
Baker Hughes Company ( BKR Quick Quote 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 The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 763 for the week ended Sep 16. The figure is higher thanthe prior week’s count of 759. Thus, the tally increased after decreasing for two straight weeks. The current national rig count is higher than the year-ago level of 512. Total U.S. Rig Count Rises:
The onshore rigs in the week ended Sep 16 totaled 744, higher than the prior-week count of 741. In offshore resources, 15 rigs were operating, in line with the prior-week count.
Oil rig count was 599 for the week ended Sep 16, higher than the prior week’s figure of 591. 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 411. U.S. Oil Rig Count Surges: Natural gas rig count of 162 was lower than the prior-week figure of 166. The count of rigs exploring the commodity is, however, higher than the prior-year week’s tally of 100. Per the latest report, the number of natural gas-directed rigs is 89.9% lower than the all-time high of 1,606 recorded in 2008. U.S. Natural Gas Rig Count Falls: The number of vertical drilling rigs totaled 23 units, lower than the prior-week count of 24. 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 740 is higher than the prior-week level of 735. Rig Count by Type: GoM rig count was 14 units, all oil-directed. The count was higher than the prior-week number of 13. Gulf of Mexico (GoM) Rig Count Increases: Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 337, higher than the prior week's count of 334. The tally increased after falling for two straight weeks.
The West Texas Intermediate crude price is trading at more than the $85-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.
Investors may keep a close eye on energy stocks like
EOG Resources ( EOG Quick Quote EOG - Free Report) and Continental Resources, Inc. , as these 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 it transitioned 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. The Zacks Rank #3 firm has gained 72.1% in the past year, outpacing the 60.8% rise of the composite stocks belonging to the industry.