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In its weekly release, Baker Hughes Company BKR reported an increase in the U.S. rig count from the prior week. The rotary rig count, issued by Baker Hughes, usually gets 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 prior-week tally indicates the trajectory of demand for Baker Hughes’oilfield services from exploration and production companies.
Details
Total US Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 569 for the week through Nov 24,higher than the prior-week count of 563. Thus, the tally has increased for five successive weeks, marking the highest count since April 2020. The current national rig count is higher than the year-ago level of 320.
The number of onshore rigs for the week ended Nov 24 totaled 552, higher than the prior-week count of 546. In offshore resources, 15 rigs were operating, in line with the prior-week count.
US Oil Rig Count Increases: Oil rig count was 467 for the week ended Nov 24, higher than the prior-week count of 461. The current tally of oil rigs — far from the peak of 1,609 attained in October 2014 — is higher than the year-ago figure of 241.
Natural Gas Rig Count Flat in US: Natural gas rig count of 102 was in line with the prior-week count. The count of rigs exploring the commodity was higher than the prior-year week’s 77. Per the latest report, the number of natural gas-directed rigs is roughly 94% below the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 22 units, flat with the prior-week count. 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 547 compared favorably with the prior-week level of 541.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 15 units, of which all were oil-directed. The count was flat with the prior-week number.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 280, higher than the prior-week count of 278. The basin's oil drilling rigs increased in 14 of the last 16 weeks.
Outlook
West Texas Intermediate crude price is trading above $70 per barrel, significantly higher than the pandemic-hit April last year when oil was in the negative territory. With coronavirus vaccines being rolled out on a massive scale, the demand for fuel will possibly improve further. This has paved the way for further rig additions, although drilling activities have slowed down as upstream players are mainly focusing on stockholder returns rather than boosting output.