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US Natural Gas Rig Count and Natural Gas Price Forecasts

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US natural gas rig count  

On June 30, 2017, Baker Hughes (BHI) is scheduled to release its US natural gas rig count report for the week ending June 30, 2017.

In its last report, Baker Hughes reported that the US natural gas rig count fell by three to 183 rigs on June 16–23, 2017. Rigs fell 0.5% week-over-week but have risen 103.3% YoY (year-over-year). US natural gas rigs rose YoY due to the rise in natural gas (UNG) (DGAZ) (UGAZ) prices in 2016.

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US crude oil and natural gas rigs are expected to rise more in 2017. The rise in drilling activity would have a positive impact on drillers like Halliburton (HAL), Rowan Companies (RDC), Schlumberger (SLB), and Diamond Offshore (DO). Read Why Is the US Natural Gas Rig Count at a 30-Month High? for more on rigs. For more on US natural gas production and consumption, read US Natural Gas Rig Count, Production, and Consumption.

US natural gas price forecasts 

The U.S. Energy Information Administration estimates that US natural prices could average $3.16 per MMBtu in 2017 and $3.41 per MMBtu in 2018, respectively. Prices averaged $2.51 per MMBtu in 2016 and $2.63 per MMBtu in 2015.

World Bank estimates that prices could average $3.17 per MMBtu in 2017 and $3.60 per MMBtu in 2018.

Impact  

President Trump’s energy plans could increase US crude oil and natural production. High crude oil and natural gas production would lead to oversupply. It would weigh on natural gas prices in 2017.

Read US and Brent Crude Oil Futures: Will the Recovery Be Short-Lived? and US Crude Oil Production and Inventories Drive Oil Prices to learn more about crude oil.

To learn about crude oil’s price forecast, read Hedge Funds’ Net Long Bullish Positions Hit a 10-Month Low.

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