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US Oil & Gas Rig Tally Hits Record Lows for 4 Straight Weeks
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In its weekly release, Baker Hughes Company (BKR - Free Report) reported a drop in the U.S. rig count.
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 affects demand for energy services like drilling, completion and production provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) , Diamond Offshore Drilling, Inc (DO - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Falls: Rigs engaged in the exploration and production of oil and natural gas in the United States fell to an all-time low of 301 in the week through May 29, compared with the prior-week count of 318. The current national rig count is below the prior year’s 984.
Investors should know that with the recent all-time low mark, the tally has touched record-low levels for four successive weeks, thanks to dented global energy demand owing to the coronavirus pandemic.
The number of onshore rigs in the week ending May 29 totaled 289 versus the previous week’s 306. Notably, the tally of rigs operating offshore plays through the week till May 29 was 12, flat with the prior-week count. Also, no rigs operated in inland waters, same as it was in the prior week.
US Removes 15 Oil Rigs: Oil rig count was 222 in the week through May 29, compared with 237 in the week ended May 22. Since crude prices are in the bearish territory, explorers are cutting their capital budget considerably. This led the weekly tally of oil rigs to fall for 11 consecutive weeks. Notably, among the upstream energy players in North America that decided to lower their capital budget for 2020 are Occidental Petroleum Corporation (OXY) and Marathon Oil Corporation (MRO). Marathon Oil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors should note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is also below the year-ago 800.
Natural Gas Rig Count Falls in US: The natural gas rig count of 77 is lower than the prior-week count of 79. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 184. Per the latest report, the number of natural gas-directed rigs is 95.2% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled seven units, compared with the prior-week count of eight. Moreover, 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 294 was lower than the prior-week level of 310.
Gulf of Mexico (GoM) Rig Count Flat: The GoM rig count is 12 units, of which all were oil-directed. The count was in line with the prior-week tally.
Rig Count in Major Basins & Outlook
Permian — the most prolific basin in the United States — saw a drop in oil rig tally by 14 in the week ended May 29. Importantly, the oil rig count dropped for 11 consecutive weeks in Permian. Moreover, drillers in the Williston basin lowered oil rig count by two.
Notably, domestic drillers may continue to lower rigs in oil patches since global energy demand has declined drastically owing to worldwide social-distancing measures taken to combat the pandemic.
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This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
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US Oil & Gas Rig Tally Hits Record Lows for 4 Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) reported a drop in the U.S. rig count.
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 affects demand for energy services like drilling, completion and production provided by the likes of Halliburton Company (HAL - Free Report) , Schlumberger Limited (SLB - Free Report) , Diamond Offshore Drilling, Inc (DO - Free Report) and Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Falls: Rigs engaged in the exploration and production of oil and natural gas in the United States fell to an all-time low of 301 in the week through May 29, compared with the prior-week count of 318. The current national rig count is below the prior year’s 984.
Investors should know that with the recent all-time low mark, the tally has touched record-low levels for four successive weeks, thanks to dented global energy demand owing to the coronavirus pandemic.
The number of onshore rigs in the week ending May 29 totaled 289 versus the previous week’s 306. Notably, the tally of rigs operating offshore plays through the week till May 29 was 12, flat with the prior-week count. Also, no rigs operated in inland waters, same as it was in the prior week.
US Removes 15 Oil Rigs: Oil rig count was 222 in the week through May 29, compared with 237 in the week ended May 22. Since crude prices are in the bearish territory, explorers are cutting their capital budget considerably. This led the weekly tally of oil rigs to fall for 11 consecutive weeks. Notably, among the upstream energy players in North America that decided to lower their capital budget for 2020 are Occidental Petroleum Corporation (OXY) and Marathon Oil Corporation (MRO). Marathon Oil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors should note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is also below the year-ago 800.
Natural Gas Rig Count Falls in US: The natural gas rig count of 77 is lower than the prior-week count of 79. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 184. Per the latest report, the number of natural gas-directed rigs is 95.2% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled seven units, compared with the prior-week count of eight. Moreover, 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 294 was lower than the prior-week level of 310.
Gulf of Mexico (GoM) Rig Count Flat: The GoM rig count is 12 units, of which all were oil-directed. The count was in line with the prior-week tally.
Rig Count in Major Basins & Outlook
Permian — the most prolific basin in the United States — saw a drop in oil rig tally by 14 in the week ended May 29. Importantly, the oil rig count dropped for 11 consecutive weeks in Permian. Moreover, drillers in the Williston basin lowered oil rig count by two.
Notably, domestic drillers may continue to lower rigs in oil patches since global energy demand has declined drastically owing to worldwide social-distancing measures taken to combat the pandemic.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
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