Baker Hughes reports that US oil and gas rigs have risen for the first time in 3 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since three weeks.
The number of oil and gas drilling rigs, a good indicator of future production, increased by one in the week ending March 21.
Baker Hughes reported that despite this week's increase in rigs the total count is still 31 rigs or 5% lower than this time last year.
Baker Hughes reported that oil rigs dropped by one this week to 486, while gas-rigs increased by two to 102.
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 on increasing production.
The U.S. Energy Information Administration, however, projected that crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to approximately 13.6 million in 2025.
The EIA predicted a 91% rise in the price of spot gas
The EIA predicted that gas production would increase to 105.2 billion cubic feet per day in 2025. This is up from 103.2 billion cubic foot per day in 2024, and a record high of 103.6 bcfd set in 2023. (Reporting and Editing by Marguerita Choy)
(source: Reuters)
