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In its last weekly release, Baker Hughes Company BKR stated that the U.S. rig count was lower than the prior week’s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
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. The number of active rigs and its comparison with the week-ago figure indicate the demand trajectory for the company’s oilfield services from exploration and production companies.
With the weekly rig count declining, should investors keep an eye on leading oil and gas exploration companies like EOG Resources Inc. EOG and Matador Resources Company MTDR? Before diving into that, let's explore the latest rig count data details.
Baker Hughes’ Data: Rig Count in Detail
Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 580 in the week ended Jan. 17, lower than the week-ago count of 584. The current national rig count also declined from the year-ago level of 620, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jan. 17 totaled 564, lower than the prior week's count of 568. In offshore resources, 14 rigs were operating, in line with the week-ago count.
U.S. Oil Rig Count Declines: The oil rig count was 478 in the week ended Jan. 17, lower than the week-ago figure of 480. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was also down from the year-ago figure of 497.
U.S. Natural Gas Rig Count Slips: The natural gas rig count of 98 fell short of the week-ago figure of 100. Moreover, the count of rigs exploring the commodity was below the year-ago week’s tally of 120. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 13 units, unchanged from the week-ago count. 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) of 567 was lower than the prior-week level of 571.