((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Scott DiSavino
U.S. energy companies this week reduced the number of oil and natural gas drilling rigs for the first time in four weeks, energy services company Baker Hughes BKR.O said in its very recent report. followed by Friday.
The number of oil and gas drilling rigs, an early indicator of future production, fell by one unit to 584 during the week of November 15, the lowest level since early September. RIG-USA-BHI
RIG-OL-USA-BHI RIG-GS-USA-BHI
The total number of drilling rigs fell by 34, or 6% less than at the same time last year.
According to Baker Hughes, the number of oil drilling rigs fell by one to 478 this week, its lowest level since the week of July 19, while the number of gas drilling rigs also fell by 'one unit to reach 101.
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 costs for labor and equipment due to soaring inflation and as businesses focused on paying down debt and increasing returns for shareholders rather than increasing production.
U.S. oil CLc1 futures are down about 6% so far in 2024 after falling 11% in 2023, while U.S. gas NGc1 futures are up 11% in 2024 after to have fallen by 44% in 2023.
U.S. crude production was on track to rise from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.5 million bpd in 2025, according to latest outlook from the U.S. Energy Information Administration (EIA) released this week.
The agency, however, slightly revised upwards the oil production forecast for 2024 while reducing the forecast for 2025 compared to last month's report.
This week, the EIA also reduced its forecast for U.S. gas production to 103.4 billion cubic feet per day (bcfd) in 2024, down from 103.5 bcfd forecast last month.
Gas production will be down from a record 103.8 billion cubic feet per day in 2023, the first decline since 2020, when the COVID-19 pandemic reduced demand for the fuel.
Several gas producers cut drilling spending earlier this year after monthly average spot prices at the Henry Hub benchmark
NG-W-HH-SNL in Louisiana dropped to a 32-year low in March.
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