Permian Basin Adds Oil Drilling Rigs for 3 Straight Weeks
In its weekly publication, the Baker Hughes Company BKR reported an increase in the number of US oil rigs.
More about the Rig Count
Baker Hughes' data, which has been published at the end of every week since 1944, has been used by utility companies to assess the overall business environment of the oil and gas industry.
A change in the number of rotary rigs at the Houston-based oilfield service provider will impact the demand for energy services such as drilling, completion and production provided by companies such as Halliburton Company HAL, Schlumberger Limited SLB and Transocean Ltd. RIG to be deployed.
The total number of US rigs is increasing: The number of rigs producing and producing oil and natural gas in the US for the week ending October 9 was 269, down from 266 the previous week. For the first time since June 2018, the number has increased for four consecutive weeks. This is because drills are slowly cranking up their activities with oil prices around $ 40 a barrel. However, the current number of national drilling rigs is below the previous year's figure of 856.
The number of onshore rigs for the week ending October 9 was 254, up from the previous week (251). In particular, the number of drilling rigs operating in the inland waters was one, just like the previous week. In addition, 14 drilling rigs were in operation in the offshore resources, which were also flat as in the previous week.
US Adds 4 Oil Rigs: The number of oil rigs was 193 in the week ended October 9, compared to 189 in the week ended October 2. Investors should also note that the current number of rigs is far from the high of 1,609 in October 2014, but below the previous year's 712.
In the US, the number of natural gas drilling rigs is falling: The number of natural gas drilling rigs at 73 was below the previous week's 74. In addition, the number of drilling rigs exploring the goods is lower than that of the previous week 143 Number of natural gas-powered rigs 95.5% below the all-time high of 1,606 in 2008.
Number of rigs by type: The number of vertical rigs was 15 units, less than the number of 16 in the previous week. However, the number of horizontal / directional drilling rigs (including new drilling technologies with the ability to drill and extract gas from dense rock formations (also known as shale formations) of 254 was higher than the previous week's level of 250.
Rig Count Count in the Gulf of Mexico (GoM): The number of GoM rigs is 14 units, all of which were aimed at oil. The count corresponded to the level of the previous week.
Rig count in productive tanks
Permian - the most productive basin in the United States - had a weekly oil rig of 129, which was higher than the previous week's 128. Thus, the basin will add oil rigs for three consecutive weeks. At Eagle Ford, drills added an oil rig for the week ending October 9th.
With oil prices rebounding rapidly - West Texas Intermediate (WTI) crude oil has risen more than 246% since late April - most analysts believe drills will continue to add oil rigs.
Meanwhile, investors can keep an eye on two energy stocks that are expected to benefit as oil prices continue to recover - Devon Energy Corporation DVN and Diamondback Energy Inc. FANG. Both stocks have a Zacks rank of 3 (hold). The full list of today's Zacks # 1 Rank (Strong Buy) stocks can be found here.
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Transocean Ltd. (RIG): Free Stock Analysis Report
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