Natural gas rig count
The US natural gas rig count rose for the fourth consecutive week for the week ending November 6, 2015. Baker Hughes (BHI) reported that the natural gas rig count rose by two to 199 for the week ending November 6, 2015. Likewise, the natural gas rig count rose by two to 197 for the week ending October 30, 2015. The US natural gas rigs rose slowly by ten in the last four weeks.
The total oil and gas rig count fell by four to 771 rigs for the week ending November 6, 2015—compared to the previous week. Likewise, the total oil and gas rig count fell by 1,154 from 1,925 in 2014. The oil and gas rig count fell due to the fall in oil and gas prices. They fell due to oversupply in the market. As a result, the US natural gas drilling activity fell by 43% from 346 in 2014 to 199 in 2015. A fall in the drilling activity impacts oil drillers like Baker Hughes, Schlumberger (SLB), Noble Energy (NE), and Halliburton (HAL).
The EIA’s (U.S. Energy Information Administration) October Drilling Productivity Report projected that the natural gas production could fall by 294 million cubic feet per day in November compared to October. The next report is scheduled to release on November 9, 2015. In contrast, the EIA estimates that the natural gas production will rise over the long term due to better planning, technological advancement, and lower drilling costs.