According to Baker Hughes, the number of oil and gas installations in the United States remained unchanged at 589 in the past week through December 13 – 12/13/2024 at 7:09 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Scott DiSavino

U.S. energy companies operated the same number of oil and natural gas drilling rigs this week as last week, energy services company Baker Hughes BKR.O said in its closely watched report on Friday.

The number of oil and gas drilling rigs, an early indicator of future production, remained unchanged at 589 in the week ending December 13,

RIG-USA-BHI RIG-OL-USA-BHI RIG-GS-USA-BHI said Baker Hughes.

According to Baker Hughes, the total number of drilling rigs decreased by 34, or 5%, from the previous year.

Baker Hughes said the number of oil drilling rigs remained steady at 482 this week, while the number of gas drilling rigs increased by one to 103, its highest level since July.

In 2023, the number of oil and gas drilling rigs fell by about 20% after increasing by 33% in 2022 and 67% in 2021, due to lower oil and gas prices, Rising labor and equipment costs due to soaring inflation and businesses focusing on paying down debt and increasing output 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. U.S. gas futures

NGc1 have increased by 30% so far in 2024 after falling by 44% in 2023.

U.S. crude production is 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).

As for gas, several producers have reduced drilling activity this year after the monthly average spot price at the Henry Hub NG-W-HH-SNL benchmark in Louisiana fell to its lowest level since 32 in March, and has remained relatively low since then.

This reduction in drilling activity is expected to cause U.S. gas production to decline for the first time since the COVID-19 pandemic reduced fuel demand in 2020.

The EIA projects gas production to fall to 103.2 billion cubic feet per day (bcfd) in 2024, from a record 103.8 bcfd in 2023.