Baker Hughes reports that US oil/gas rig counts have fallen for the 4th consecutive month, to a low of Oct 2021.
Baker Hughes, a leading energy services company, said that the U.S. has cut its number of operating oil and gas rigs for the fourth consecutive month to the lowest level since October 2021.
The number of oil and gas drilling rigs, a good indicator of future production, dropped by seven in the week ending June 27.
Baker Hughes reported that oil rigs dropped by six this week to 432, their lowest level since October 2021. Gas rigs also decreased by two, to 109.
Drillers cut 16 oil-and-gas rigs in June, bringing the total down for the fourth consecutive month for the first since June 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 paying off debt than increasing production.
The independent exploration companies (E&Ps) tracked by U.S. Financial Services firm TD Cowen have said that they plan to reduce capital expenditures in 2025 by approximately 3% from the levels in 2024.
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 of oil per day in 2024 to approximately 13.4 million barrels in 2025.
The EIA predicted an 84% 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)
