In its weekly release, Baker Hughes Company BKR reported that the U.S. rig count was higher than the prior-week tally. 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 prior-week figure indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.

Details

Total U.S. Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 765 for the week ended Sep 30. The figure is higher than the prior week’s count of 764. The current national rig count is higher than the year-ago level of 528.

The onshore rigs in the week ended Sep 30 totaled 745, higher than the prior-week count of 744. In offshore resources, 16 rigs were operating, in line with the prior-week count.

U.S. Oil Rig Count Rises: Oil rig count was 604 for the week ended Sep 30, higher than the prior week’s figure of 602. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 428.

U.S. Natural Gas Rig Count Falls: Natural gas rig count of 159 was lower than the prior-week figure of 160. The count of rigs exploring the commodity is, however, higher than the prior-year week’s tally of 99. Per the latest report, the number of natural gas-directed rigs is 90.1% lower than the all-time high of 1,606 recorded in 2008.

Rig Count by Type: The number of vertical drilling rigs totaled 23 units, lower than the prior-week count of 25. 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 742 is higher than the prior-week level of 739.

Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 15 units, all oil-directed. The count was in line 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 339, flat with the prior week count. The tally increased in two of the past three weeks.

Outlook

The West Texas Intermediate crude price is still extremely favorable for exploration and production activities. Solid oil price will likely pave the way for further rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.