Drill Baby Drill!

By: Barb Zearley / September 6, 2018

Oil well drilling in the United States has increased dramatically in the last five years. The increase in drilling activity has had a direct impact on petroleum pricing. Rig counts are an indicator for the potential supply picture of the oil and gas industry. A sharp increase in the number of drilling rigs domestically, would potentially affect the direction of product prices. The industry tends to speculate the greater number of active drilling rigs, the lower the price.   

As a resident of Western Pennsylvania, I have seen natural gas drilling rigs come and go. According to Oilprice.com, “Baker Hughes reported a 4-rig increase of active oil and gas rigs in the United States… rigs rose to 1,048 according to the report, with the number of active rigs increasing by 2 and the number of gas rigs increasing by 2. The oil and gas rig count is now 105 up from this time last year.” Even though there has been an increase in rig count from last year, prices have not gone down noticeably.   

Drilling is just one of many factors that can affect the price of product. Some other major price impactors are natural disasters such as hurricanes and floods, pipeline disruptions, global instability, and Governmental policies. Rig counts continue to provide insight into the petroleum industries outlook on the future demand and the price for oil products.

oil-img

https://oilprice.com/Energy/Enehttps

https://www.tigergeneral.com/understanding-oil-gas-rig-count

https://oilprice.com/Energy/Energy-General/Oil-Prices-Inch-Lower-As-Rig-Count-Rises.html


Categories: drilling, crude oil, drilling rigs, oil and gas


Barb Zearley

Written by

Barb Zearley

With 15 years of industry experience, I am self-motivated, customer-oriented and attentive to achieve customer goals and satisfaction.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us