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Rig Counts Still Falling In America

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Rig Counts Still Falling In America
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For more than 70 years, Baker Hughes Incorporated (NYSE: BHI) has been issuing rotary rig counts for the United States and Canada every week. In addition, for the last 40 years, the company has also issued a monthly international rig count.

According to the oilfield services supplier, the rig counts are “an important business barometer for the drilling industry and its suppliers. When drilling rigs are active they consume products and services produced by the oil service industry. The active rig count acts as a leading indicator of demand for products used in drilling, completing, producing and processing hydrocarbons.”

United States, Canada And Beyond

On Friday, Baker Hughes released its latest rig count. As of Friday, the United States came in at 874 active rigs, down from 876 a week ago and from 1,889 registered a year ago.

On the other hand, Canada’s rig count surged from 200 last Friday, to 215 this Friday, but is also down when compared to the 392 working rigs the company had counted a year ago.

Related Link: Oppenheimer Downgrades Murphy Oil: Is it No Longer A Buying Opportunity?

Finally, on a global level, the rig count fell about 1 percent month-over-month in June to 1,146. Last year, the rig count for June reached 1,344.

Oil And Gas

Although overall rigs in use in the United States fell this week, oil rigs continued to surge for the second consecutive week. Last week, the number of oil rigs in use increased by 21 to 659. This week, the count rose again; this time by 5 to 664. Gas rigs fell by 7 to 209.

The surge in Canada was driven mostly by oil rigs. Active oil rigs increased by 14 to 112, while active gas rigs only rose by 1 to 103.

The United States Oil Fund LP (ETF) (NYSE: USO) is trading down around 2.70 percent on Friday, 2:30 p.m. EST.

Baker Hughes is slightly down, too, by 0.29 percent and trading at $58.52.

Industry Peers

Other large companies in the industry like Schlumberger Limited. (NYSE: SLB) and Kinder Morgan Inc (NYSE: KMI) are also falling slightly on Friday.

Refiners

Refineries are tumbling more steeply. Exxon Mobil Corporation (NYSE: XOM) plummeted more than 4.3 percent, Chevron Corporation (NYSE: CVX) 5 percent and BP plc (ADR) (NYSE: BP) 1.75 percent.

Smaller Refiners

On the other hand, smaller refiners like Cosan Limited(USA) (NYSE: CZZ) and Midcoast Energy Partners LP (NYSE: MEP) are surging by 2.39 percent and 1.36 percent, respectively.

Image Credit: Public Domain

Latest Ratings for BHI

DateFirmActionFromTo
Dec 2016BernsteinInitiates Coverage OnMarket Perform
Nov 2016KeyBancMaintainsOverweight
Nov 2016Atlantic EquitiesUpgradesUnderweightNeutral

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