| Is the US Natural Gas Rig Count Going Back into a Downtrend? | |
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What’s Driving the Weakness in US Rig Counts? (Continued from Prior Part) Natural gas rig count
In the United States, there were 202 natural gas rigs operating in the week ended August 28, nine less than the previous week. In the past nine weeks, natural gas rigs declined six times, while increasing twice. Read the following part of this series to find out the key shales where natural gas rigs were most affected last week.
Since the beginning of this year, the number of natural gas rigs in operation fell by 126. The four-week average reduction in the natural gas rig count was two for the week ended August 28. In comparison, the four-week average decrease was one for the week ended August 21. Four-week averages give a smoother view of this trend that otherwise can be quite volatile on a weekly basis.
What does this mean?
Fewer natural gas rigs in operation suggest that natural gas producers like CONSOL Energy (CNX), Southwestern Energy (SWN), Linn Energy (LINE), WPX Energy (WPX), and Pioneer Natural Resources (PXD) might be decreasing their drilling activities. This could mean a fall in natural gas production growth or even a production decline. In contrast, a rise in the number of rigs in operation indicates a potential increase in production growth. This would be positive for these companies. CONSOL Energy accounts for 0.43% of the Energy Select Sector SPDR ETF (XLE).
MLPs specializing in natural gas storage and transportation activities like AmeriGas Partners (APU), DCP Midstream Partners (DPM), and ONEOK Partners (OKS) could be affected negatively if natural gas production falls.
Historical perspective
Natural gas rigs have been on a downward trend for about four years. The number of active natural gas rigs also fell over the last 12 months. A year ago, there were 338 natural gas rigs in operation. Currently, there are 202 active rigs. That’s a fall of 136 rigs, or ~40%.
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Consol Energy Inc.
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PRODUCER |
CODE : CNX |
ISIN : US20854P1093 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Consol Energy is a producing company based in United states of america. Consol Energy produces coal in USA, and holds various exploration projects in USA. Its main asset in production is BUCHANAN in USA. Consol Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 5.4 billions as of today (€ 5.0 billions). Its stock quote reached its highest recent level on June 06, 2008 at US$ 99.79, and its lowest recent point on April 26, 2019 at US$ 10.00. Consol Energy has 223 758 284 shares outstanding. |