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Permian Witnesses Addition of Oil Rigs for 6 Straight Weeks
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In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count.
More on the Rig Count
Baker Hughes’ data, which is 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) along with Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 430 for the week through Apr 1compared with the prior-week figure of 417. The latest tally marked the highest count since April 2020. However, the current national rig count is below the year-ago level of 664.
The number of onshore rigs for the week ended Apr 1 totaled 416, higher than the prior count of 405. In offshore resources, 14 rigs were operating versus the prior-week count of 12.
US Adds 13 Oil Rigs: Oil rig count was 337 for the week through Apr 1 compared with 324 in the week ended Mar 26. Thus, in the United States, oil drillers added the highest number of rigs in a week since January 2020. Investors should also note that the current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is, however, below the year-ago figure of 562.
Natural Gas Rig Count Declines in US: Natural gas rig count of 91 declined from the prior-week count of 92. Notably, the count of rigs exploring the commodity was below the prior-year week’s 100. Per the latest report, the number of natural gas-directed rigs is almost 94.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 20 units versus the prior-week count of 22. 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 410, however, compared favorably with the prior-week level of 395.
Gulf of Mexico (GoM) Rig Count Increases: GoM rig count was 14 units, of which all were oil-directed. The count was higher than the prior-week tally of 12.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 223 versus the prior-week count of 221. Thus, the tally for oil drilling rigs in the basin increased for six weeks in a row. In the Eagle Ford shale play, the tally for oil drilling rigs was 31 versus 29 in the prior week.
Outlook
The price of West Texas Intermediate crude, trading at more than $60 per barrel mark, has improved drastically from the pandemic low hit last April, when oil was in the negative territory. With coronavirus vaccines being rolling out at a massive scale, the demand for fuel will possibly improve further. This will likely pave the way for further crude price recovery, thereby encouraging oil and gas drillers to add rigs to shale plays.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if the oil price continues to remain healthy — Devon Energy Corporation (DVN - Free Report) and Diamondback Energy Inc. (FANG - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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Permian Witnesses Addition of Oil Rigs for 6 Straight Weeks
In its weekly release, Baker Hughes Company (BKR - Free Report) reported an increase in the U.S. rig count.
More on the Rig Count
Baker Hughes’ data, which is 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) along with Transocean Ltd. (RIG - Free Report) .
Details
Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 430 for the week through Apr 1compared with the prior-week figure of 417. The latest tally marked the highest count since April 2020. However, the current national rig count is below the year-ago level of 664.
The number of onshore rigs for the week ended Apr 1 totaled 416, higher than the prior count of 405. In offshore resources, 14 rigs were operating versus the prior-week count of 12.
US Adds 13 Oil Rigs: Oil rig count was 337 for the week through Apr 1 compared with 324 in the week ended Mar 26. Thus, in the United States, oil drillers added the highest number of rigs in a week since January 2020. Investors should also note that the current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is, however, below the year-ago figure of 562.
Natural Gas Rig Count Declines in US: Natural gas rig count of 91 declined from the prior-week count of 92. Notably, the count of rigs exploring the commodity was below the prior-year week’s 100. Per the latest report, the number of natural gas-directed rigs is almost 94.3% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 20 units versus the prior-week count of 22. 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 410, however, compared favorably with the prior-week level of 395.
Gulf of Mexico (GoM) Rig Count Increases: GoM rig count was 14 units, of which all were oil-directed. The count was higher than the prior-week tally of 12.
Rig Count in Prolific Basins
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 223 versus the prior-week count of 221. Thus, the tally for oil drilling rigs in the basin increased for six weeks in a row. In the Eagle Ford shale play, the tally for oil drilling rigs was 31 versus 29 in the prior week.
Outlook
The price of West Texas Intermediate crude, trading at more than $60 per barrel mark, has improved drastically from the pandemic low hit last April, when oil was in the negative territory. With coronavirus vaccines being rolling out at a massive scale, the demand for fuel will possibly improve further. This will likely pave the way for further crude price recovery, thereby encouraging oil and gas drillers to add rigs to shale plays.
Meanwhile, investors may keep an eye on two energy stocks that are expected to benefit if the oil price continues to remain healthy — Devon Energy Corporation (DVN - Free Report) and Diamondback Energy Inc. (FANG - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>