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.
US Oil & Gas Rig Tally at Record Low for 7 Straight Weeks
Read MoreHide Full Article
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 266 in the week through Jun 19, compared with the prior-week count of 279. The current national rig count is below the prior year’s 967.
Investors should know that with the recent all-time low, the tally has touched record-low levels for seven successive weeks, thanks to dented global energy demand owing to the coronavirus pandemic.
The number of onshore rigs in the week ending Jun 19 totaled 255 versus the previous week’s 266. Moreover, the tally of rigs operating offshore plays through the week till Jun 19 was 11 versus the prior-week count of 13. Notably, no rigs operated in inland waters, same as it was in the prior week.
US Removes 10 Oil Rigs: Oil rig count was 189 in the week through Jun 19, compared with 199 in the week ended Jun 12. Notably, the tally declined for 14 consecutive weeks. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is below the year-ago 789.
Natural Gas Rig Count Declines in US: The natural gas rig count of 75 is lower than the prior-week count of 78. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 177. Per the latest report, the number of natural gas-directed rigs is 95.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 14 units, higher than the prior-week count of 11. However, 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 252 was lower than the prior-week level of 268.
Gulf of Mexico (GoM) Rig Count Decreases: The GoM rig count is 11 units, of which all were oil-directed. The count was lower than the prior-week tally of 13.
Rig Count in Major Basins
Permian — the most prolific basin in the United States — saw a drop in oil rig tally by five in the week ended Jun 19. Importantly, the oil rig count dropped for 14 consecutive weeks in Permian. Moreover, drillers in the Eagle Ford shale play lowered oil rig count by two.
Outlook
With oil prices recovering gradually – West Texas Intermediate crude has recovered almost 20% in the past month – most analysts opine that the decline in weekly rig count will slow down. In fact, some analysts believe that if the recovery sustains, since more people are getting back to work on easing lockdown measures, many explorers will consider adding rigs.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
US Oil & Gas Rig Tally at Record Low for 7 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 266 in the week through Jun 19, compared with the prior-week count of 279. The current national rig count is below the prior year’s 967.
Investors should know that with the recent all-time low, the tally has touched record-low levels for seven successive weeks, thanks to dented global energy demand owing to the coronavirus pandemic.
The number of onshore rigs in the week ending Jun 19 totaled 255 versus the previous week’s 266. Moreover, the tally of rigs operating offshore plays through the week till Jun 19 was 11 versus the prior-week count of 13. Notably, no rigs operated in inland waters, same as it was in the prior week.
US Removes 10 Oil Rigs: Oil rig count was 189 in the week through Jun 19, compared with 199 in the week ended Jun 12. Notably, the tally declined for 14 consecutive weeks. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is below the year-ago 789.
Natural Gas Rig Count Declines in US: The natural gas rig count of 75 is lower than the prior-week count of 78. Moreover, the count of rigs exploring the commodity is lower than the prior-year week’s 177. Per the latest report, the number of natural gas-directed rigs is 95.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 14 units, higher than the prior-week count of 11. However, 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 252 was lower than the prior-week level of 268.
Gulf of Mexico (GoM) Rig Count Decreases: The GoM rig count is 11 units, of which all were oil-directed. The count was lower than the prior-week tally of 13.
Rig Count in Major Basins
Permian — the most prolific basin in the United States — saw a drop in oil rig tally by five in the week ended Jun 19. Importantly, the oil rig count dropped for 14 consecutive weeks in Permian. Moreover, drillers in the Eagle Ford shale play lowered oil rig count by two.
Outlook
With oil prices recovering gradually – West Texas Intermediate crude has recovered almost 20% in the past month – most analysts opine that the decline in weekly rig count will slow down. In fact, some analysts believe that if the recovery sustains, since more people are getting back to work on easing lockdown measures, many explorers will consider adding rigs.
Meanwhile, investors may consider two energy stocks which are expected to benefit if the oil price rally sustains – QEP Resources, Inc. and W&T Offshore, Inc. (WTI - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>