Baker Hughes reports that US energy companies have cut back on drilling for the first time in six-weeks.

Baker Hughes, a closely-followed energy'services' firm, said in a report on Friday that U.S. firms have cut back the number of operating rigs for the first six weeks. Total oil and gas rig counts, an indicator of future production, dropped by one in the week ending July 24. This is the lowest level since mid-July. Baker Hughes said that despite this week's decline in rig count, the total number was still 45 rigs or 8% higher than this time last. Baker Hughes reported that oil rigs dropped by two this week to 450, their lowest level since mid July, while gas-fired rigs climbed by one to 127 - the highest level since mid May - and miscellaneous or other rigs remained at 10. Oil and gas rig counts declined by 7%, 5%, and 20% between 2025 and 2024 as energy firms focused more on increasing shareholder returns and paying off debt than increasing production. The U.S. Energy Information Administration (EIA), a U.S. government agency, has projected that crude oil production will increase from a record of 13.6 million barrels a day (bpd), in 2025, to 13.8 millions bpd, in 2026, due to the disruptions in supply caused by the U.S. and Israeli 'war on Iran. EIA's projected gas output will increase from a record of 107.7 billion cu?feet a day (bcfd), in 2025, to 111.3 bcfd by 2026 as demand increases for electricity in power-hungry data centres and LNG for export. (Reporting and editing by Nick Zieminski, David Gregorio, and Scott DiSavino)

(source: Reuters)