2023-09-01 17:14:29
U.S. energy companies reduced the number of oil and natural gas rigs in operation this week for the eighth straight week, energy services company Baker Hughes said in its widely watched report on Friday.
The oil and gas rig count, an early indicator of future production, fell by one unit to 631 in the week of September 1, its lowest level since February 2022.
US oil rigs were unchanged at 512 this week, holding at their lowest level since February 2022, while gas rigs were down one unit at 114, their lowest level since January 2022.
U.S. oil futures are up regarding 6% year-to-date, following rising regarding 7% in 2022. U.S. gas futures, meanwhile, have plunged drastically. 37% since the start of the year following increasing by around 20% last year.
U.S. crude oil production rose once more in June and is approaching a pre-pandemic record high, while gas production fell from its record high in May, despite a spike in major gas-producing states. , Texas and Pennsylvania, as the latest government data showed this week.
The pace of growth is slowing, however, as the industry reacts to lower prices.
After oil prices spiked in June 2022 following Russia’s invasion of Ukraine, the number of oil rigs increased until the end of November, but has since fallen by around 18%, while the number of gas rigs has fallen by around 30% since its last peak in March. (Reporting by Scott DiSavino, editing by Marguerita Choy)
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