I remain bullish on the drillers
Posted: Thu Feb 09, 2012 2:41 pm
The North American land drilling cycle appears to be intact despite the plunge in natural gas prices and cuts in dry gas drilling across the exploration and production industry. This conclusion is based on an examination of recent operational data and management commentary during the earnings season.
Read more: http://stocks.investopedia.com/stock-an ... z1lunyqNVJ
Basic Energy Services (NYSE:BAS) is an oil service company that provides well site services to onshore oil and gas wells in the United States. The company just released operating data for January 2012, providing an excellent look at recent activity levels.
The company reported a 76% well servicing rig utilization rate for the month, up from 69% in December 2011. It reported drilling rig day's utilization of 84% in January 2012, down from 89% in December 2011. The company estimates that this decline will be temporary and is looking for 90% utilization over the next few quarters.
It also highlighted the Permian Basin area as having strong demand in January 2012. The company estimates that 70% of its current activity is related to development activity in crude oil and other liquids areas.
Baker Hughes (NYSE:BHI) reported that the land rig count in the U.S. averaged 1,960 in January 2012, about flat with the 1,961 working in December 2011. This still represents strong growth over January 2011, when 1,685 rigs were working.
Read more: http://stocks.investopedia.com/stock-an ... z1lunyqNVJ
Basic Energy Services (NYSE:BAS) is an oil service company that provides well site services to onshore oil and gas wells in the United States. The company just released operating data for January 2012, providing an excellent look at recent activity levels.
The company reported a 76% well servicing rig utilization rate for the month, up from 69% in December 2011. It reported drilling rig day's utilization of 84% in January 2012, down from 89% in December 2011. The company estimates that this decline will be temporary and is looking for 90% utilization over the next few quarters.
It also highlighted the Permian Basin area as having strong demand in January 2012. The company estimates that 70% of its current activity is related to development activity in crude oil and other liquids areas.
Baker Hughes (NYSE:BHI) reported that the land rig count in the U.S. averaged 1,960 in January 2012, about flat with the 1,961 working in December 2011. This still represents strong growth over January 2011, when 1,685 rigs were working.