Baker Hughes reports that US drillers have cut back on oil and gas rigs in the US for a second consecutive week.
Baker Hughes, a leading energy services company, said that the U.S. firms have cut back on oil and gas rigs for the second consecutive week.
The number of oil and gas drilling rigs, a good indicator of future production, dropped by two in the week ending August 1. This is the lowest level since October 2021.
Baker Hughes reported that the number of rigs is down 46, or 7.8% from this time last year.
Baker Hughes reported that oil rigs dropped by five this week to 410, their lowest level since September 2021. Gas rigs, however, rose by two, to 124, the highest level since August 2023.
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 on increasing production.
The U.S. Energy Information Administration, however, projected that crude production would increase from a record 13,2 million barrels of oil per day (bpd), in 2024, to approximately 13.4 million in 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), which was a record in 2024, and 103.6 bcfd for 2023. (Reporting and editing by Scott DiSavino, Anjana Anil)
(source: Reuters)
