Baker Hughes reports that the US oil rig number has reached its highest level since June.
Baker Hughes, a leading energy services company, said that the U.S. firms cut back on the number oil and gas rigs for the second consecutive week, despite the fact that the number oil rigs was at its highest level since June.
The number of oil and gas rigs, a good indicator of future production, dropped by two in the week ending April 4 to 590.
Baker Hughes reported that oil rigs increased by five this week to 489, their highest level since June. Gas rigs, on the other hand, fell by seven to 96 - their lowest level since September - which is the largest weekly drop since May 2023.
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 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 bcfd and a record-breaking 103.6 bcfd. (Reporting and Editing by Marguerita Choy)
(source: Reuters)
