Gulf of Mexico Rig Count at 4-Yr High - Analyst Blog
20 Agosto 2013 - 5:00PM
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 upside can
be attributed to an increase in the tally of both oil and natural
gas-directed rigs. In particular, rigs working in the U.S. Gulf of
Mexico (GoM) jumped to its highest level in 4 years.
The Baker Hughes’ data, issued since 1944, acts as an important
yardstick for energy service providers in gauging the overall
business environment of the oil and gas industry.
Analysis of the Data
Weekly Summary: Rigs engaged in exploration and
production in the U.S. totaled 1,791 for the week ended Aug 16,
2013. This was up by 13 from the previous week’s rig count and
indicates the sixth increase in 7 weeks.
The current nationwide rig count is more than double the lowest
level reached in recent years (876 in the week ended Jun 12, 2009),
though it is way below the prior-year level of 1,914. It rose to a
22-year high in 2008, peaking at 2,031 in the weeks ending Aug 29
and Sep 12.
Rigs engaged in land operations ascended by 9 to 1,706, inland
waters activity was down by 1 to 23 rigs, while offshore drilling
increased by 5 to 62 units.
Natural Gas Rig Count: The natural gas rig count –
which recently slumped to its lowest point since Jun 1995 –
increased for the sixth time in 8 weeks to 388 (a gain of 2 rigs
from the previous week). Despite the weekly growth, the number of
gas-directed rigs is down by 52% from its 2012 peak of 811.
In fact, the current natural gas rig count remains 76% below its
all-time high of 1,606 reached in late summer 2008. In the year-ago
period, there were 484 active natural gas rigs.
Oil Rig Count: The oil rig count – that rocketed
to a 25-year high of 1,432 a year ago – jumped by 12 to 1,397. It
has recovered strongly from a low of 179 in Jun 2009, rising 7.8
times.
Miscellaneous Rig Count: The miscellaneous rig
count (primarily drilling for geothermal energy) at 6 was down by 1
from the previous week.
Rig Count by Type: The number of vertical drilling
rigs fell by 2 to 445, 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 15 to 1,346. In particular, horizontal rig
units – that reached an all-time high of 1,193 in May 2012 –
increased by 12 from the last week’s level to 1,077.
Gulf of Mexico (GoM): The GoM rig count was up by
4 to 59, the highest level since Feb 2009. Oil drilling increased
to 44 rigs from 42 a week ago, while gas rigs improved upon their
week-ago level by 2 to 15.
Conclusion
A Key Barometer of Drilling Activity: An increase
or decrease in the Baker Hughes rotary rig count heavily weighs on
the demand for energy services – drilling, completion, production
etc. – provided by companies that include large-cap names like
Halliburton Co. (HAL) and Schlumberger
Ltd. (SLB). However, our preferred pick in this group is
SEACOR Holdings Inc. (CKH). The Fort Lauderdale,
FL-based firm – sporting a Zacks Rank #1 (Strong Buy) – has a solid
secular growth story with potential to rise significantly from
current level.
BAKER-HUGHES (BHI): Free Stock Analysis Report
SEACOR HLDGS (CKH): Get Free Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Schlumberger (NYSE:SLB)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Schlumberger (NYSE:SLB)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024