Oil and gas rig counts are frequently used throughout the oil and gas industry as a metric of consumer confidence. For many, the oil and gas rig counts indicating an optimistic path forward for energy-related companies.
A Rig count is an official listing of all the oil and gas rigs that are operational at a certain location. This count demonstrates the necessary details such as the location of each rig and its functional status.
It is an important procedure as it helps to get an insight of the active number of drilling rigs that are installed on both offshore and onshore sites. A Rig count can be done nationally or internationally in different phases such as weekly, monthly or annually.
A Rig count is a tally process of active or inactive rigs. A Rig count helps in collecting data that helps in analyzing several factors and indicating the status of drilling activities.
A rig would be counted even if it is down and inactive or up and active. It is a definitive measure of understanding the drilling status of an oil well. This counting process of drilling rigs can also provide an insight to data such as the type and volume of oil or gas produced, well depth, production, drilling costs etc.
As a matter of fact, it is also used as a measurement of the production range. The rigs are counted from weekly to annual basis and can range from nationwide counting to global counting.
In general, the Rig count indicates a willingness for oil and gas companies to continue investing. Rig counts signify the actual activity within the current market. They are separate from speculation and analysis because they are the actual activity within the market.
The Rig counts don’t just indicate the activity either, but also the activity between gas rigs and oil rigs. The counts show where activity is occurring, as different areas may be explored further than others, and could show an additional drift in the market.