Yes, Natural Gas Rigs are Declining but Production Isn't

This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

When attempting to predict future levels of natural gas production, monthly rig counts from companies like Baker Hughes were relied upon as leading indicators. Most thought that a decline in rigs meant natural gas production would suffer in the future. However, that has been becoming less and less the case lately, and the U.S. Energy Information Administration put out data on this topic this week to support that notion. Motley Fool analyst Taylor Muckerman suggests looking at quarterly conference calls from companies like Halliburton (NYSE: HAL  ) and Schlumberger (NYSE: SLB  ) to better gauge activity levels.

Service companies like these have taken advantage of the boom, but who else has?

Record oil and natural gas production is revolutionizing the United States' energy position. However, finding the right companies to invest in can be intimidating. For this reason, the Motley Fool is offering you a comprehensive look at three energy companies set to soar during this transformation in the energy industry. We invite you to check out our special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2705424, ~/Articles/ArticleHandler.aspx, 4/20/2014 7:03:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement