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

Details

Total US Rig Count Flat: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 663 for the week through Mar 18, in line with the prior-week count. The current national rig count is higher than the year-ago level of 411.

The number of onshore rigs for the week ended Mar 18 totaled 648, lower than the prior-week count of 649. In offshore resources, 12 rigs were operating, higher than the prior-week count of 11.

US Oil Rig Count Declines: Oil rig count was 524 for the week ended Mar 18, lower than the prior-week figure of 527. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is, however, up from the year-ago figure of 318.

Natural Gas Rig Count Rises in the US: Natural gas rig count of 137 was higher than the prior-week figure of 135. The count of rigs exploring the commodity is also higher than the prior-year week’s tally of 92. Per the latest report, the number of natural gas-directed rigs is 91.5% lower than the all-time high of 1,606 recorded in 2008.

Rig Count by Type: The number of vertical drilling rigs totaled 21 units, lower than the prior-week count of 23. 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 642, however, compared favorably with the prior-week level of 640.

Gulf of Mexico (GoM) Rig Count Increases: GoM rig count was 12 units, all being oil-directed. The count was higher than the prior-week number of 11.

Rig Count in the Most Prolific Basin

Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 315, lower than the prior-week count of 316. Thus, the basin's oil drilling rig count registered a decrease after increasing for seven straight weeks.

Outlook

The West Texas Intermediate crude price is trading above $105 per barrel, marking a massive improvement from the past year. The price of the commodity shot up, primarily due to the escalation of Russian attacks on Ukraine. Higher oil prices will pave the way for rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.