Breaking News
0

Permian Oil Rig Tally Declines In 5 Consecutive Weeks

By Zacks Investment ResearchStock MarketsMay 20, 2019 08:49AM ET
www.investing.com/analysis/permian-oil-rig-tally-declines-in-5-consecutive-weeks-200423059
Permian Oil Rig Tally Declines In 5 Consecutive Weeks
By Zacks Investment Research   |  May 20, 2019 08:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

In its weekly release, Baker Hughes, a GE company (NYSE:BHGE) reported a decline in weekly rig count in the United States.

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 services player’s rotary rig count affects demand for energy services like drilling, completion and production provided by the likes of Halliburton Company (NYSE:HAL) , Schlumberger Limited (NYSE:SLB) , Diamond Offshore Drilling, Inc (NYSE:DO) and Transocean Ltd. (NYSE:RIG) .

Details

Total US Rig Count Decreases: Rigs engaged in the exploration and production of oil and natural gas in the United States totaled 987 in the week ended May 17, down from the prior-week tally of 988. With this, the tally declined for six weeks in a row. The current national rig count is also lower than the prior year’s 1046.

The number of onshore rigs, through the week ended May 17, totaled 961, down from 964 in the previous week. However, four rigs operated in inland waters, in line with the prior-week tally. Moreover, the tally for offshore activities totaled 22, up from 20 in the week ended May 10.

US Removes 3 Oil Rigs: Oil rig tally was 802, down from 805 in the week ended May 10. Notably, the tally for oil drilling rigs not only declined for two weeks in a row, but also touched the lowest mark since March 2018.

Notably, the current total, far from the peak of 1,609 attained in October 2014, is also lower than 844 a year ago.

Natural Gas Rig Count Increases in US: The natural gas rig count of 185 is higher than the count of 183 for the week ended May 10.

However, the count of rigs exploring the commodity is lower than the prior-year quarter’s tally of 200. Per the latest report, the number of natural gas-directed rigs is 88.5%, below the all-time high of 1,606 in 2008.

Rig Count by Type: The number of vertical drilling rigs totaled 48 units against the previous week’s 45. 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) declined by four units to 939.

Gulf of Mexico (GoM) Rig Count Increases: The GoM rig count is 22 units, of which 19 were oil-directed. The count was higher than the prior week’s 20.

Conclusion

Three oil drilling rigs were removed from the Permian Basin, the most prolific basin in the United States which employs roughly half of the nation’s total rigs. This led to a drop in total rig count operating in the United States. Notably, Permian has seen a decline in oil drilling rigs in the last five consecutive weeks. Investors should also note that the waning oil rig count reflects conservative spending by some of the drillers in the nation.

Although drillers are opting for conservative capital spending, the United States is likely to see production growth of more than 13% through 2019, per the U.S. Energy Information Administration.

Amid expected rise in production volumes and favorable crude pricing scenario, trading at more than $60 a barrel psychological mark, it would be a wise choice for investors to include a couple of oil stocks like Anadarko Petroleum Corporation (NYSE:APC) and Devon Energy Corp. (NYSE:DVN) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>



Halliburton Company (HAL): Free Stock Analysis Report

Schlumberger Limited (SLB): Free Stock Analysis Report

Diamond Offshore Drilling, Inc. (DO): Free Stock Analysis Report

Transocean Ltd. (RIG): Free Stock Analysis Report

Anadarko Petroleum Corporation (APC): Free Stock Analysis Report

Devon Energy Corporation (DVN): Free Stock Analysis Report

Baker Hughes, a GE company (BHGE): Free Stock Analysis Report

Original post
Permian Oil Rig Tally Declines In 5 Consecutive Weeks
 

Related Articles

Permian Oil Rig Tally Declines In 5 Consecutive Weeks

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email