Oil and Gas Rig Numbers Drop in the US

U.S. energy firms today cut the number of oil and natural gas rigs operating for the first time in three weeks, energy services firm Baker Hughes stated in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, fell by three to 586 in the week to Aug. 2. the overall rig count down 73, or 11%, below this time last year. Baker Hughes said oil well were consistent at 482 this week, while gas rigs fell by three to 98. The oil and gas rig count dropped about 20% in 2023 after increasing by 33% in 2022 and 67% in 2021, due to a decline in oil and gas rates, greater labor and equipment costs from skyrocketing inflation and as business focused on paying for financial obligation and improving shareholder returns rather of raising output. 

U.S. oil futures were up about 2% so far in 2024 after visiting 11% in 2023, while U.S. gas futures were down about 24 %up until now in 2024 after plunging by 44% in 2023. 

Latest government data revealed U.S. petroleum production fell in May in its first regular monthly decrease considering that January, while natural gas output decreased in the month to its most affordable given that February 2023. On The Other Hand, Exxon Mobil improved its revenue in the second quarter partially due to volume gains from its purchase this year of shale oil firm leader Natural Resources. 

The leading U.S. oil producer increased its yearly capital expense assistance to$ 28 billion from the previously estimated $23 -$ 25 billion. The outcomes likewise revealed higher cash flow from operations which will assist money greater share buybacks and dividends.

It also plans to buy back $19 billion in shares this year , the biggest share bought program amongst its top Western rivals, up from$ 17.4 billion last year.

(Source: Reuters)