By OGJ editors
HOUSTON, Jan. 7 -- The rig count dropped going into January from December just as it has for each of the last 55 years, noted Banc of America Securities LLC analyst James K. Wicklund.
Normal seasonality of US drilling shows a drop in activity through the early months of each year before drilling activity bottoms out and then regains momentum, he said, adding he expects 2003 to be no exception.
"Every year, investors are surprised, worried, or concerned about this phenomenon. They shouldn't be, in our view," Wicklund said.
For the week ending Jan. 3, Baker Hughes Inc. reported US drilling activity down 25 rotary rigs to 837 working for that week. That was down from 883 during the same period a year ago (OGJ Online, Jan. 3, 2003).
"Our studies show that oil field service and equipment stocks typically drop, by an average of about 2%, from December into January," Wicklund added.