U.S. Rig Count Goes Past 1900 - Analyst Blog
July 19 2011 - 1:30PM
Zacks
In its weekly release, Houston-based
oilfield services company Baker Hughes Inc.
(BHI) reported a rise in the U.S. rig
count (number of rigs searching for oil and gas in the country).
This can be primarily attributed to an increase in the tally of
land rigs.
The Baker Hughes rig count, issued
since 1944, acts as an important yardstick for drilling contractors
such as Transocean Inc. (RIG),
Diamond Offshore (DO),
Noble Corp. (NE), Nabors
Industries (NBR), Patterson-UTI
Energy (PTEN) and Helmerich &
Payne (HP) in gauging the overall
business environment of the oil and gas industry.
Weekly
Summary
Rigs engaged in exploration and
production in the U.S. totaled 1,905 for the week ended July 15,
2011. This is up by 18 from the previous week’s rig count and
represents the highest level since November 21, 2008.
The current nationwide rig count is
more than double that of the 6-year low of 876 (set in the week
ended June 12, 2009) and significantly exceeds the prior-year level
of 1,571. It rose to a 22-year high in 2008, peaking at 2,031 in
the weeks ending August 29 and September 12.
Rigs engaged in land operations
climbed by 14 to 1,852, while inland waters activity and offshore
drilling increased by 2 each to 18 and 35, respectively.
Natural Gas Rig
Count
The natural gas rig count increased
by 12 from the previous week to 885. Despite the weekly
improvement, the number of gas-directed rigs is down nearly 11%
from its 2010 peak of 992, reached during mid-August.
In fact, the current natural gas rig
count remains 45% below its all-time high of 1,606 reached in late
summer 2008, but have rebounded strongly after bottoming out to a
7-year low of 665 on July 17, 2009. In the year-ago period, there
were 979 active natural gas rigs.
Oil Rig
Count
The oil rig count was up by 6 to
1,013. The current tally – the highest in 23 years – is
considerably more than the previous year’s rig count of 580. It has
recovered strongly from a low of 179 in June 2009, rising more than
5.6 times.
Miscellaneous Rig
Count
The miscellaneous rig count
(primarily drilling for geothermal energy), at 7, remained steady
compared to the previous week.
Rig Count by
Type
The number of vertical drilling rigs
fell by 4 to 566, while 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) was up by 22 at 1,339. In particular, horizontal rig
units rose by 13 in the latest week to hit a new all-time high of
1,086.
BAKER-HUGHES (BHI): Free Stock Analysis Report
DIAMOND OFFSHOR (DO): Free Stock Analysis Report
HELMERICH&PAYNE (HP): Free Stock Analysis Report
NABORS IND (NBR): Free Stock Analysis Report
NOBLE CORP (NE): Free Stock Analysis Report
PATTERSON-UTI (PTEN): Free Stock Analysis Report
TRANSOCEAN LTD (RIG): Free Stock Analysis Report
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