| US Natural Gas Rig Count Decreased in the Week Ended October 9 | |
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Why Did the US Rig Count Drop in the Week Ended October 9? (Continued from Prior Part) US natural gas rig count
In the United States, there were 189 natural gas rigs operating in the week ended October 9, six less than in the previous week. In the past 15 weeks, natural gas rigs decreased ten 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 139. The four-week average reduction in the natural gas rig count was two for the week ended October 9. In comparison, the four-week average decrease also totaled two for the week ended October 2. Four-week averages give a smoother view of this trend that otherwise can be quite volatile on a weekly basis.
What does this mean?
The drop in natural gas–targeted 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) are decreasing their drilling activities. CONSOL Energy accounts for 0.3% of the Energy Select Sector SPDR Fund (XLE). This could eventually reduce natural gas production.
Plus, MLPs specializing in natural gas storage and transportation activities such as AmeriGas Partners (APU), DCP Midstream Partners (DPM), and Oneok Partners (OKS) could be negatively affected if natural gas production decreases.
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 320 natural gas rigs in operation. Currently, there are 189 active rigs, which is a fall of 131 rigs, or ~41%.
Continue to Next Part Browse this series on Market Realist:
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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 5,4 milliards US$ (5,0 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. |