Baker Hughes reports that US drillers have added oil/gas rigs to their fleet for the first time in twelve weeks.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since 12 weeks.
The number of oil and gas rigs, a good indicator of future production, increased by seven in the week ending July 18, its largest weekly increase since December.
Baker Hughes reported that despite this week's increase in rigs the total count is still 42 rigs or 7% lower than this time last year.
Baker Hughes reported that oil rigs dropped by two this week to 422 - their lowest level since September 2021 - while gas rigs increased by nine – the largest weekly increase since 2023 – to 117 — their highest since March 2024.
Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S. gas and oil prices in recent years have prompted energy companies to concentrate more on increasing shareholder returns and reducing debt than increasing production.
TD Cowen, a U.S.-based financial services company, said that the independent exploration and production companies (E&Ps) tracked by it planned to reduce capital expenditures in 2025 by approximately 3% from 2024 levels.
This compares to spending that is roughly flat in 2024 and increases of 27%, 40%, and 44% in 2023.
The U.S. Energy Information Administration, however, projected that crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to around 13,4 million bpd by 2025.
The EIA predicted a 68% rise in the price of spot gas
The EIA predicted that gas production would increase to 105.9 bcfd by 2025. This is up from 103.2 billion cubic feet (bcfd), and the record 103.6 bcfd of 2023. (Reporting and Editing by Marguerita Choy)
(source: Reuters)
