| Rate of US Rig Count Decline Slows in Week Ended May 8 | |
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May 8 US Rig Count: Low Prices Pressure Activity for 22nd Week US total rig count
According to oilfield service company Baker Hughes (BHI), there were 894 active oil and gas rigs in the US during the week ending May 8, 2015. There were 11 fewer active rigs than in the week ending May 1. With last week’s fall, the average four-week US rig count drop was 24. In comparison, the rig count drop averaged 34 in the four weeks before that. The rate of decline is slowing down.
The US rig count generally experienced an uptrend throughout most of 2014. However, that trend reversed in the past five months with 22 consecutive weeks of falling rig counts.
Rig count is the lowest since June 2009
With last week’s drop, the US rig count hit its lowest level since June 12, 2009. A fall in the onshore rig count led the week’s figures. According to Baker Hughes, April’s average rig count of 945 represents a decline of 165 from March’s 1,110 active rigs.
Total US rig count hit 2,031 in September 2008, the highest it had been since July 1987, according to Baker Hughes’s records. In September 2014, the average rig count came close to that record, reaching 1,931.
Energy companies including Marathon Oil (MRO), EOG Resources (EOG), and CONSOL Energy (CNX) have upstream operations. A falling rig count should typically lead to a slowdown in production growth and possibly even a decline in production.
CONSOL Energy accounts for 0.73% of the Energy Select Sector SPDR ETF’s (XLE) total market capitalization. EOG Resources accounts for 0.1% of the iShares U.S. Energy ETF (IYE).
Why have the total US rig counts been falling for so long? We’ll explore this issue in the next part of this series.
Continue to Prior Part Browse this series on Market Realist:
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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. |