Key Takeaways
- The Pentagon has stated that Alibaba Group Holding Ltd. (BABA) should be added to a list of firms with China–military ties, citing allegations of technology and data support to the People's Liberation Army (PLA).
- The total U.S. Baker Hughes rig count fell by 10 to 544 in the week ending November 26, down from 554 the previous week.
- Oil rigs in the U.S. decreased by 12 to 407, while natural gas rigs saw an increase of 3 to 130 during the same period.
- Horizontal drilling rigs in the U.S. also experienced a decline, falling by 6 to a total of 475.
The Pentagon has reportedly asserted that Chinese e-commerce and technology giant Alibaba Group Holding Ltd. (BABA) should be included on a list of companies with alleged ties to the Chinese military. This development comes amid heightened U.S. scrutiny of Chinese tech firms, with a White House memo citing declassified intelligence that alleges Alibaba has provided the People's Liberation Army (PLA) with technology and sensitive user data for operations targeting the United States. Alibaba has forcefully rejected these allegations, describing them as "complete nonsense" and an attempt to manipulate public opinion.
In the energy sector, the latest Baker Hughes data for the week ending November 26 indicates a notable contraction in overall U.S. drilling activity. The total U.S. oil and natural gas rig count decreased by 10 to 544, down from 554 in the prior week. This decline was primarily driven by a reduction in oil drilling rigs, which fell by 12 to 407 from 419.
Conversely, the U.S. natural gas drilling rig count showed a slight increase, rising by 3 to 130 in the same week. Meanwhile, horizontal drilling rigs, a key indicator of shale activity, also saw a decline, falling by 6 to 475.
Regionally, the Gulf of Mexico saw a decrease of 1 rig, and Texas experienced a more significant drop of 8 rigs in the week to November 26. In terms of major basins, the Permian Basin recorded a decrease of 3 rigs, and the Eagle Ford basin was down by 2 rigs. Other basins such as Williston, Niobrara, Haynesville, and Utica remained unchanged during the week. These shifts reflect ongoing adjustments by energy firms in response to market conditions and a focus on capital discipline.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.