Baker Hughes reports that US drillers added oil and gas rigs in the US for a second consecutive week.

Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the second consecutive week for the first since February.

The number of oil and gas drilling rigs, a good indicator of future production, increased by two in the week ending April 25.

Baker Hughes reported that despite this week's increase in rigs, the total count is still 26 or 4% lower than this time last year.

Baker Hughes reported that oil rigs grew by two this week to 483 while gas rigs grew by one to 98.

Drillers reduced the number of operating rigs by five in April. This is the second consecutive month that the total has decreased. Oil rigs were down by one, and gas rigs by four.

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 reducing debt than increasing production.

There are many small businesses.

U.S. shale oil producers

Oil drilling is being halted as crude oil prices have fallen to their lowest levels in years and high tariffs are driving up construction costs.

Baker Hughes

Rival

Halliburton

In earnings this week, the companies warned of the impact on their revenue from reduced drilling and tariffs.

Oil and Gas Producer

Spending

Baker Hughes announced on Thursday that the U.S. & Canada are set to see a decline in the low double digits, as opposed to a previous prediction of a drop in mid-single figures.

(source: Reuters)