Natural gas rig count
In the week ended August 4, 2017, the US natural gas rig count was at 189, three less than in the week ended July 28, 2017. On a year-over-year basis, the natural gas rig count rose more than twice, while natural gas (FCG) prices were only 10.1% up.
What happened after 2008?
Since 2008, the natural gas rig count has fallen 88.2%. However, the natural gas supplies have seen a large upsurge since 2008. The rise in US natural gas production could be because of the surge in US crude oil production during this period.
Last week, the US oil rig count fell by one to 765. However, the US oil rig count jumped more than two times on a year-over-year basis. Relatively strong US crude oil prices had encouraged US crude oil producers to add more oil rigs. Moreover, new well gas production per rig may grow by 26.5% on a year-over-year basis in August 2017.
So, rising rigs and increasing efficiency could be negative for natural gas prices. This development could be crucial for US natural gas producers (XOP) (XLE) like Southwestern Energy (SWN), Antero Resources (AR), and others.