SunSirs: The Number of Active Oil and Gas Drilling Rigs in the United States has Decreased for the Third Consecutive Week

https://www.chemnet.com   Jun 24,2024 SunSirs

According to foreign sources on June 21st, Baker Hughes, an American energy service company, stated in its closely watched report on Friday that the number of active oil and gas drilling rigs by US energy companies continued to decrease this week, reaching a new low since January 2022 for the third consecutive week.

Data shows that as of the week ending June 21, the leading indicator of future production, the total number of US oil and gas drilling rigs, decreased by 2 to 588.

Baker Hughes stated that the total number of drilling rigs decreased by 94, or 14%, compared to the same period last year.

Baker Hughes announced that the number of oil drilling rigs decreased by 3 this week to 485, which is also the lowest level since January 2022; The number of natural gas drilling rigs remained unchanged at 98, the lowest since October 2021.

The number of oil and gas drilling rigs in the United States increased by 33% and 67% respectively in 2022 and 2021, but decreased by about 20% in 2023 due to the decline in crude oil and natural gas prices, soaring inflation leading to increased labor and equipment costs, and companies focusing on debt repayment and improving shareholder returns rather than increasing production.

Goldman Sachs stated this week that the number of drilling platforms in the Permian Basin, the largest oilfield in the United States, is expected to remain roughly unchanged this year, but will slightly decrease to below 300 by the end of 2026 as US producers continue to maintain capital discipline.

According to data from Baker Hughes, the total number of oil and gas drilling rigs in the Permian strata of West Texas and eastern New Mexico decreased by one this week to 308, the lowest level since January.

Baker Hughes stated that the production growth in the mature Permian Basin may gradually slow down, from an exceptionally strong 520,000 barrels per day in 2023 to a still strong 270,000 barrels per day in 2026.

After an 11% drop in oil prices in 2023, US crude oil futures have risen by approximately 10% so far in 2024; US natural gas futures have risen by about 7% so far this year and plummeted by 44% in 2023.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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