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.
Permian Oil Drilling Rig Count Rises for 2 Straight Weeks
Read MoreHide Full Article
In its weekly release, Baker Hughes Company (BKR - Free Report) stated that the U.S. rig count was lower than the prior-week figure. 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 comparison of the same with the prior-week figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 642 for the week ended Aug 18. The figure is lower than the prior week’s count of 654. The figure decreased for six straight weeks, representing a slowdown in drilling activities. Some analysts think that shale producers are getting more efficient and, therefore, require fewer rigs. While a few doubt whether some producers have enough prospective land to drill. The current national rig count is also lower than the year-ago level of 762.
Onshore rigs in the week ended Aug 18 totaled 621, lower than the prior week's count of 632. In offshore resources, 17 rigs were operating, lower than the prior week’s count of 18.
U.S. Oil Rig Count Falls: The oil rig count was 520 in the week ended Aug 18, lower than the prior week’s 525. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from the year-ago figure of 601.
U.S. Natural Gas Rig Count Declines: The natural gas rig count of 117 is lower than the prior week’s 123. The count of rigs exploring the commodity is below the prior-year week’s 159. Per the latest report, the number of natural gas-directed rigs is 92.7% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 18 units, lower than the prior week’s count of 22. The 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 624 is lower than the prior-week level of 632.
Gulf of Mexico (GoM) Rig Count Falls: The GoM rig count was 16 units, all oil-directed. The count was lower than the prior week’s 17.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 323, higher than the prior week's 322. The number increased for two straight weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is highly favorable for exploration and production activities. Solid 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 - Free Report) and Matador Resources Company (MTDR - Free Report) , as the companies are expected to benefit from the current healthy oil price scenario.
EOG Resources is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties, and undeveloped acreage. MTDR expects the acquisition to be accretive to important valuation and financial metrics.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Permian Oil Drilling Rig Count Rises for 2 Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) stated that the U.S. rig count was lower than the prior-week figure. 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 comparison of the same with the prior-week figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 642 for the week ended Aug 18. The figure is lower than the prior week’s count of 654. The figure decreased for six straight weeks, representing a slowdown in drilling activities. Some analysts think that shale producers are getting more efficient and, therefore, require fewer rigs. While a few doubt whether some producers have enough prospective land to drill. The current national rig count is also lower than the year-ago level of 762.
Onshore rigs in the week ended Aug 18 totaled 621, lower than the prior week's count of 632. In offshore resources, 17 rigs were operating, lower than the prior week’s count of 18.
U.S. Oil Rig Count Falls: The oil rig count was 520 in the week ended Aug 18, lower than the prior week’s 525. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from the year-ago figure of 601.
U.S. Natural Gas Rig Count Declines: The natural gas rig count of 117 is lower than the prior week’s 123. The count of rigs exploring the commodity is below the prior-year week’s 159. Per the latest report, the number of natural gas-directed rigs is 92.7% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 18 units, lower than the prior week’s count of 22. The 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 624 is lower than the prior-week level of 632.
Gulf of Mexico (GoM) Rig Count Falls: The GoM rig count was 16 units, all oil-directed. The count was lower than the prior week’s 17.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 323, higher than the prior week's 322. The number increased for two straight weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is highly favorable for exploration and production activities. Solid 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 - Free Report) and Matador Resources Company (MTDR - Free Report) , as the companies are expected to benefit from the current healthy oil price scenario.
EOG Resources is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties, and undeveloped acreage. MTDR expects the acquisition to be accretive to important valuation and financial metrics.