US drillers added oil and gas drilling rigs in the third week of a row, according to Baker Hughes
Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the third consecutive week for the first since December 2023.
The number of oil and gas rigs, a good indicator of future production, increased by two in the week ending February 14 to 588.
Baker Hughes reported that despite this week's increase in rigs the total count is still 33 rigs or 5% lower than this time last.
Baker Hughes reported that oil rigs increased by one this week to 481 while gas rigs grew by one to 101.
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 paying off debt and increasing shareholder returns than raising production.
Top oilfield service provider
Restructuring certain business functions
According to an email and a source who is familiar with the issue, there will be more job cuts.
Sources say that the changes are a result of the Houston-based firm working on cost-saving initiatives and preparing for a tepid increase in sales this year, as customers become more cautious with their spending due to concerns about an oversupplied market.
Although analysts predicted that U.S. crude spot prices would remain the same in 2025, U.S. Energy Information Administration projected that crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to around 13.6 millions bpd, in 2025.
The EIA predicted a 73% rise in the price of spot gas
The EIA predicted that gas production would increase to 104.6 billion cubic feet per day in 2025. This is up from 103.1 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)
