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Oil Rig Counts Drop, Affecting the Overall US Rig Count (Continued from Prior Part) US natural gas rig count
In the week ending October 16, there were 192 US natural gas rigs operating—three more than in the previous week. In the past 18 weeks, natural gas rigs increased only six times. The following part of this series discusses 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 has fallen by 136. The four-week average reduction in the natural gas rig count was two for the week ending October 16. In comparison, the four-week average decrease was also two for the week ending October 9. Four-week averages give a broader view of rig counts, which otherwise can be quite volatile on a weekly basis.
What does this mean?
The rise in natural gas rigs suggests that natural gas producers such as CONSOL Energy (CNX), Southwestern Energy (SWN), LINN Energy (LINE), WPX Energy (WPX), and Pioneer Natural Resources (PXD) could be increasing their drilling activities. CONSOL Energy accounts for 0.3% of the Energy Select Sector SPDR Fund (XLE). This could eventually increase natural gas production.
Further, MLPs specializing in natural gas storage and transportation activities such as AmeriGas Partners (APU), DCP Midstream Partners (DPM), and ONEOK Partners (OKS) could benefit if natural gas production rises.
Historical perspective
Natural gas rigs have been on a downward trend for about four years. The number of active natural gas rigs has also fallen over the last 12 months. A year ago, there were 328 natural gas rigs in operation. Currently, there are 192 active rigs. That’s a fall of 136 rigs, or ~42%.
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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$ 5.3 billions as of today (€ 4.7 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. |