US drillers cut oil, gas rigs for third week in a row

US energy firms has cut the number of oil and natural gas rigs operating for a third week in a row, energy services firm Baker Hughes said in its closely followed report on Friday, reports Reuters.

The oil and gas rig count, an early indicator of future output, fell by one to 539 in the week to August 8.

Baker Hughes said oil rigs rose by one to 411 this week, while gas rigs fell by one to 123, and miscellaneous rigs fell by one to five.

In Texas, the biggest oil and gas-producing state, the rig count fell by two to 243, the lowest since October 2021.

In the Permian basin in West Texas and eastern New Mexico, the biggest US oil-producing shale formation, the rig count fell by three to 256, the lowest since September 2021.

In the Eagle Ford shale in South Texas, the rig count fell by one to 38, the lowest since October 2021.

The oil and gas rig count declined by about 5 per cent in 2024 and 20 per cent in 2023 as lower US oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.