SunSirs: Baker Hughes: The Number of Active Oil and Gas Drilling Rigs in the United States Decreased for the Fifth Time in Six Weeks

https://www.chemnet.com   Jul 15,2024 SunSirs

According to foreign news on July 12th, US energy service company Baker Hughes stated in its closely watched report on Friday that the number of active oil and gas drilling rigs in US energy companies has declined this week, marking the fifth week of decline in six weeks.

Data shows that as of the week ending July 12th, the leading indicator of future production, the total number of oil and gas drilling rigs in the United States, decreased by one to 584.

Baker Hughes stated that the total number of drilling rigs decreased by 91, or 13%, compared to the same period last year.

Baker Hughes announced that the number of oil drilling rigs decreased by one this week to 478, the lowest level since December 2021; The number of natural gas drilling rigs has decreased by 1 to 100.

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.

After an 11% drop in oil prices in 2023, US crude oil futures have risen by approximately 16% so far in 2024; US natural gas futures have fallen about 7% so far this year, with a significant drop of 44% in 2023.

According to the latest short-term energy outlook report released by the US Energy Information Administration (EIA), rising oil prices may encourage drillers to increase crude oil production from 12.9 million barrels per day in 2023 to 13.3 million barrels per day in 2024, and further increase to approximately 13.8 million barrels per day in 2025.

The natural gas prices fell to a three-and-a-half-year low in February and March, prompting some producers to reduce their drilling activity expenditures.

EIA states that the reduction in drilling activities should lead to a decline in US natural gas production to 103.5 billion cubic feet per day in 2024, lower than the record high of 103.8 billion cubic feet per day in 2023.

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