US natural gas rig counts
On August 18, 2017, Baker Hughes (BHI) is scheduled to release its weekly crude oil and natural gas rig count report. In the previous report, it reported that rigs fell by eight to 181 on August 4–11, 2017—the biggest weekly fall since February 2016. Natural gas rig counts are near the levels seen on May 19, 2017. It suggests that natural gas rigs are slowing due to lower crude oil (USO) (UCO) and natural gas (UNG) (UGAZ) prices in the last few months.
Meanwhile, natural gas rig counts fell 4.2% week-over-week but rose 118% year-over-year.
Crude oil rig counts impact natural gas prices
US natural gas drilling activity
The EIA (U.S. Energy Information Administration) released its monthly drilling productivity report on August 14, 2017. It estimates that US natural gas production in the seven shale regions would rise by 929 Mcf (million cubic feet) per day to 59,426 Mcf per day in September 2017—compared to August 2017.
In the next part, we’ll discuss US natural gas production and consumption.