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New Mexico and Texas See a Rise in Onshore Drilling Rigs
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In its weekly release, Baker Hughes , a GE company, reported an increase in rig count in the United States.
About 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.
Change in this Houston-based oilfield services player’s rotary rig count impacts 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. and Transocean Ltd. (RIG - Free Report) .
Details
Weekly Summary: Rigs engaged in the exploration and production of oil and natural gas in the United States totaled 1046 in the week (ended May 18) compared with the prior week’s 1045. Notably, total count increased 11 times in the last 12 weeks.
Since it slipped to an all-time low of 404 in May 2016, rig count has been rising rapidly in U.S. shale resources. Punctuated by a few pauses, the current nationwide rig count is considerably higher than the prior-year level of 901.
For the week in discussion, the rise in rig count can be attributed to higher onshore operations. The number of onshore rigs totaled 1023, marginally higher than 1021. Four rigs operated in the inland waters last week, higher than three for the week ended May 11. The tally for offshore rigs was, however, recorded at 19 compared with 21.
Oil Rig Count: Oil rig count was 844, flat with the week ended May 11. Moreover, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 720. The oil rig count rose nine times in the last 12 weeks.
Natural Gas Rig Count: The natural gas rig count of 200 is higher than 199 for the week ended May 11.
Moreover, like oil, the count of rigs exploring gas is above the year-ago tally of 180.
Per the recent report, the number of natural gas-directed rigs is 88%, below the all-time high of 1,606 achieved in late summer 2008.
Rig Count by Type: The number of vertical drilling rigs of 61 units increased from 55 units. However, the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) fell by five units to 985 units.
Gulf of Mexico (GoM): The GoM rig count is at 18 units — 17 rigs were oil-directed — lower than the tally of 20 for the week ended May 11.
Conclusion
The number of total rigs exploring in the United States has increased, courtesy of the addition of three land rigs in New Mexico and two in Texas.
West Texas Intermediate (WTI) crude continues to trade above the $70-a-barrel psychological mark owing to concerns that Iran’s crude export might fall after Trump nixed the nuclear deal. Moreover, there is considerable room for rally in oil prices which could support the persistent ramp up in drilling activities.
We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.
Comstock will likely see year-over-year earnings growth of 90.8% in 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
New Mexico and Texas See a Rise in Onshore Drilling Rigs
In its weekly release, Baker Hughes , a GE company, reported an increase in rig count in the United States.
About 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.
Change in this Houston-based oilfield services player’s rotary rig count impacts 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. and Transocean Ltd. (RIG - Free Report) .
Details
Weekly Summary: Rigs engaged in the exploration and production of oil and natural gas in the United States totaled 1046 in the week (ended May 18) compared with the prior week’s 1045. Notably, total count increased 11 times in the last 12 weeks.
Since it slipped to an all-time low of 404 in May 2016, rig count has been rising rapidly in U.S. shale resources. Punctuated by a few pauses, the current nationwide rig count is considerably higher than the prior-year level of 901.
For the week in discussion, the rise in rig count can be attributed to higher onshore operations. The number of onshore rigs totaled 1023, marginally higher than 1021. Four rigs operated in the inland waters last week, higher than three for the week ended May 11. The tally for offshore rigs was, however, recorded at 19 compared with 21.
Oil Rig Count: Oil rig count was 844, flat with the week ended May 11. Moreover, the current tally, though far from the peak of 1,609 attained in October 2014, is significantly higher than last year’s 720. The oil rig count rose nine times in the last 12 weeks.
Natural Gas Rig Count: The natural gas rig count of 200 is higher than 199 for the week ended May 11.
Moreover, like oil, the count of rigs exploring gas is above the year-ago tally of 180.
Per the recent report, the number of natural gas-directed rigs is 88%, below the all-time high of 1,606 achieved in late summer 2008.
Rig Count by Type: The number of vertical drilling rigs of 61 units increased from 55 units. However, the horizontal/directional rig count (encompassing new drilling technology that has the ability to drill and extract gas from dense rock formations, also known as shale formations) fell by five units to 985 units.
Gulf of Mexico (GoM): The GoM rig count is at 18 units — 17 rigs were oil-directed — lower than the tally of 20 for the week ended May 11.
Conclusion
The number of total rigs exploring in the United States has increased, courtesy of the addition of three land rigs in New Mexico and two in Texas.
West Texas Intermediate (WTI) crude continues to trade above the $70-a-barrel psychological mark owing to concerns that Iran’s crude export might fall after Trump nixed the nuclear deal. Moreover, there is considerable room for rally in oil prices which could support the persistent ramp up in drilling activities.
Two energy stocks that should make valuable additions to your portfolio are Anadarko Petroleum Corporation and Comstock Resources, Inc. (CRK - 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.
We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.
Comstock will likely see year-over-year earnings growth of 90.8% in 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>