US energy firms this week cut the number of oil and natural gas rigs operating for the fifth time in six weeks, energy services firm Baker Hughes said in its report on Friday.
The oil and gas rig count, an early indicator of future output, fell by one to 584 in the week to July 12.
Baker Hughes said that puts the total rig count down 91 rigs, or 13 per cent, below this time last year.
Baker Hughes said oil rigs fell by one to 478 this week, their lowest since December 2021, while gas rigs fell by one to 100.
The oil and gas rig count dropped about 20 per cent in 2023 after rising by 33 per cent in 2022 and 67 per cent in 2021, due to a decline in oil and gas prices, higher labor and equipment costs from soaring inflation and as companies focused on paying down debt and boosting shareholder returns instead of raising output.
US oil futures are up about 16 per cent so far in 2024 after dropping by 11 per cent in 2023, while US gas futures are down about 7 per cent so far in 2024 after plunging by 44 per cent in 2023.
US drillers cut oil and gas rigs for fifth time in six weeks
FE Team | Published: July 15, 2024 23:42:59
US drillers cut oil and gas rigs for fifth time in six weeks
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