Baker Hughes Rig Counts

11. September, 2016 News No comments
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   You may didn’t know that there is something like Baker Hughes Rig Counts. They are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. They tend to correlate with oil and gas prices. It is an important business indicator for the drilling industry as well as its suppliers. Active drilling rigs consume products and services provided by the oil service industry. This count is helpful in establishing the demand for products used in drilling, completing, producing and processing hydrocarbons.

When oil and gas prices decline, the rig count declines, although the pace of the decline depends on credit conditions and circumstances in the energy market. However, the rig count’s responsiveness to changes in oil prices is a key factor in forecasting the price of oil and gas. The rig count is a tool to understand future supply trends. For example, if oil and gas prices drop and rig counts drop as well, it is more likely oil and gas prices will bounce back as supply decreases. If oil and gas prices drop and rig counts do not drop, it is more likely the price of oil and gas remains low, until it is low enough to cause production to decrease.

Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. In 1975 the monthly international rig count was initiated by Baker Hughes. What’s interesting, the North American rig count is scheduled to be released at noon Central time on the last working day of each week. The international rig count is scheduled to be released on the fifth working day of the month at 5:00 a.m. Central time.

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Baker Hughes Incorporated announced today that the international rig count for August 2016 was 937 down 1 from the 938 counted in July 2016, and down 200 from the 1,137 counted in August 2015. The international offshore rig count for August 2016 was 228, up 2 from the 226 counted in July 2016, and down 42 from the 270 counted in August 2015.

The average U.S. rig count for August 2016 was 481, up 32 from the 449 counted in July 2016, and down 402 from the 883 counted in August 2015. The average Canadian rig count for August 2016 was 129, up 35 from the 94 counted in July 2016, and down 77 from the 206 counted in August 2015.

The worldwide rig count for August 2016 was 1,547, up 66 from the 1,481 counted in July 2016, and down 679 from the 2,226 counted in August 2015.

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This is the weekly comparison of counted rigs in U.S. now and in 2015. As you can see, it really gives clear overview on whole situation. There was a constant decrease until June 2016, and there is slightly growth from it till now.

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sources:

phx.corporate-ir.net

bakerhughes.com

aogr.com

investopedia.com

infomine.com

 

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