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Sharp Reductions in Crude Oil Rigs Bring US Rig Count Down (Part 2 of 10) (Continued from Part 1) Why were rig counts lower last week?
Last week’s lower rig count was mainly due to there being 42 fewer active crude oil rigs, partially offset by the addition of three natural gas rig counts. One miscellaneous rig was idled last week. Read the next part of this series to see how the crude oil rig count declined.
In the last year, the total US crude oil and natural gas rig count has dropped by 843, or 46%. The number of active oil rigs decreased by 757, or 50%, and the number of natural gas rigs fell by 85, or ~27%. The total rig count increased by 60 for the corresponding period ending April 11, 2014.
Rig count trends and the will to drill
Rig counts tell us how many rigs are actively drilling for oil and gas. Fewer rigs can be a good sign that supply and demand are nearing a balance. Rig counts also signal how confident producers are about the market for drilling for oil and gas.
Falling rig counts indicate a decline in upstream activity, which can result in falling production growth for the upstream operators. Hess Corporation (HES), Chesapeake Energy (CHK), Continental Resources (CLR), and Apache (APA) are upstream companies. Together, HES and CHK account for 2.1% of the Energy Select Sector SPDR ETF’s (XLE) total market capitalization. Apache comprises 1% of the iShares Global Energy ETF (IXC).
Continue to Part 3 Browse this series on Market Realist:
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Hess Corporation
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CODE : HES |
ISIN : US42809H1077 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Hess Corp. is a and oil exploration company based in United states of america. Hess Corp. is listed in Germany and in United States of America. Its market capitalisation is US$ 50.1 billions as of today (€ 46.8 billions). Its stock quote reached its lowest recent point on November 17, 1989 at US$ 10.06, and its highest recent level on April 24, 2024 at US$ 159.13. Hess Corp. has 315 053 615 shares outstanding. |