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 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 indicates the demand trajectory for Baker Hughes’ oilfield services from exploration and production companies.

Details

Total US Rig Count Increases: 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 11, higher thanthe prior-week count of 650. Thus, the tally has increased in nine of the prior 10 weeks. The current national rig count is higher than the year-ago level of 402.

The number of onshore rigs for the week ended Mar 11 totaled 649, higher than the prior-week count of 635. In offshore resources, 11 rigs were operating, lower than the prior-week count of 12.

US Oil Rig Count Rises: Oil rig count was 527 for the week ended Mar 11, higher than the prior-week figure of 519. 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 309.

Natural Gas Rig Count Rises in the US: Natural gas rig count of 135 was higher than the prior-week figure of 130. 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 91.6% 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 640, however, compared favorably with the prior-week level of 625.

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

Rig Count in the Most Prolific Basin

Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 316, higher than the prior-week count of 310. Thus, the basin's oil drilling rig count increased for seven straight weeks.

Outlook

The West Texas Intermediate crude price is trading above $100 per barrel, marking a massive improvement in the past year. The price of the commodity shot up primarily with the escalation of Russian attacks on Ukraine. Higher oil price 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.