In its weekly release, Baker Hughes Company BKR reported that the U.S. rig count was lower 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 Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 727 for the week ended May 27. The figure is lower thanthe prior week’s count of 728. However, the current national rig count is higher than the year-ago level of 457.

The onshore rigs in the week ended May 27 totaled 710 compared with the prior week’s count of 709. In offshore resources, 16 rigs were operating, lower than the prior-week count of 18.

U.S. Oil Rig Count Declines: Oil rig count was 574 for the week ended May 27, lower than the prior week’s figure of 576. 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 359.

U.S. Natural Gas Rig Count Rises: Natural gas rig count of 151 was higher than the prior-week figure of 150. The count of rigs exploring the commodity is higher than the prior-year week’s tally of 98. Per the latest report, the number of natural gas-directed rigs is 91% lower than the all-time high of 1,606 recorded in 2008.

Rig Count by Type: The number of vertical drilling rigs totaled 25 units, in line 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 702 compared unfavorably with the prior-week level of 703.

Gulf of Mexico (GoM) Rig Count Declines: GoM rig count was 15 units, all oil-directed. The count was lower than the prior-week number of 17 units.

Rig Count in the Most Prolific Basin

Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 341, lower than the prior-week count of 342. Thus, the basin's oil drilling rig count decreased after the count increased significantly in the prior week. The decline in the tally, despite high oil price, represents the fact that exploration and production players are focusing less on growing production volumes, but on returning more capital to stockholders and reducing debt loads.