Baker Hughes reports that the US oil/gas rig counts are stable this week. Pennsylvania has fallen to a 17-year low.
Baker Hughes, a closely watched energy services company, said that the U.S. firms maintained the same number of oil and gas rigs this week. The count fell to a low not seen in Pennsylvania for 17 years, according to its report.
The number of oil and gas drilling rigs, a good indicator of future production, was 585 during the week ending October 25.
Baker Hughes reported that the total number of workers was down by 40 or 6% compared to this time last.
This week, oil rigs dropped by two - to 480 - while gas rigs grew by two – to 101.
Drillers in Pennsylvania, which produces mainly gas, have cut down one drill rig. The state's total has dropped to 12 rigs, the lowest level since July 2007.
Drillers also reduced one rig in the Marcellus Shale, the largest gas producing basin of the United States, which is located in Pennsylvania, West Virginia, and Ohio. The region's total has dropped to 22, its lowest level since August 2016.
In the Gulf of Mexico, two drilling rigs were cut, bringing the total number of rigs in the region to 14, which is the lowest level since March 2023.
The total number of oil and gas rigs across the country was down two rigs for the month after increasing by four rigs during September.
The oil rig number was down four rigs this month, after increasing by one in September. Meanwhile, the gas rig counts were up two after rising by four last month.
Oil and gas rig counts dropped by about 20% in the year 2023, after increasing by 33% and 67% respectively in 2022, 2021 and 2022. This was due to lower oil and natural gas prices and higher labor and equipment cost from rising inflation, as well as companies focusing on debt repayment and shareholder returns rather than raising output.
U.S. futures for oil have been flat in 2024, after falling by 11% in the previous year. U.S. futures for gas are up about 1% after a 44% drop in 2023. (Reporting and Editing by Marguerita Chy)
(source: Reuters)
