Part I of this series focused on the continual reduction of rigs exploring for natural gas in the domestic U.S. lower 48. All the while, commodity prices continue to surge upward with futures prices even higher.
This third part will focus on the oil service providers that will benefit from what could become surging demand for services work as both oil and natural gas producers scramble for available crews.
As mentioned in Part I, the Baker Hughes (BHI) rig report on October 12th showed an interesting divergence with the commodity markets. While natural gas has jumped some 60% in the past few months, the amount of rigs drilling for natural gas plunged to lows not seen since 1999. On the October 19th report, the natural gas rig count increased 5 up to 427. A year ago, the count was 927.
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