| 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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PRODUCTEUR |
CODE : CNX |
ISIN : US20854P1093 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Consol Energy est une société de production minière basée aux Etats-Unis D'Amerique. Consol Energy est productrice de charbon en USA, et détient divers projets d'exploration en USA. Son principal projet en production est BUCHANAN en USA. Consol Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 6,6 milliards US$ (5,9 milliards €). La valeur de son action a atteint son plus haut niveau récent le 06 juin 2008 à 99,79 US$, et son plus bas niveau récent le 26 avril 2019 à 10,00 US$. Consol Energy possède 223 758 284 actions en circulation. |