((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added number of drilling rigs in the Haynesville Shale and in Colorado, Louisiana and Wyoming in paragraphs 5-7) by Scott DiSavino
U.S. energy companies this week reduced the number of oil and natural gas drilling rigs for the second week in a row, the first time since the beginning of October, energy services company Baker Hughes BKR said .O in its closely followed report published Friday.
The number of oil and gas drilling rigs, an early indicator of future production, fell by one unit to 583 in the week of Nov. 22, the lowest level since early September. RIG-USA-BHI
RIG-OL-USA-BHI RIG-GS-USA-BHI
The total number of drilling rigs decreased by 39, or 6%, compared to the same period last year.
According to Baker Hughes, the number of oil drilling rigs increased by one unit to 479 this week, while the number of gas drilling rigs decreased by two units to 99.
In the Haynesville shale in Louisiana, Texas and Arkansas, the number of drilling rigs fell by two to 30, the lowest since February 2017.
In Colorado, the rig count decreased by one unit to 10, the lowest level since June 2021, while in Louisiana, it decreased by three units to 30, the lowest level since August 2020.
In Wyoming, the number of drilling rigs increased by one to 19, the highest level since October 2023.
The number of oil and gas drilling rigs fell by about 20% in 2023 after increasing by 33% in 2022 and 67% in 2021, due to lower oil and gas prices, increased labor and equipment costs due to soaring inflation and as businesses focused on paying down debt and increasing return for shareholders rather than on increasing production.
U.S. oil futures CLc1 are down about 1% so far in 2024 after falling 11% in 2023, while U.S. gas futures
NGc1 have increased by approximately 42% so far in 2024 after falling by 44% in 2023.
The 25 independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said that, on average, they planned to leave their 2024 spending roughly unchanged from 2023.
In comparison, spending increased by 27% in 2023, 40% in 2022 and 4% in 2021.
