This week, U.S. energy companies reduced the count of operational oil and natural gas rigs for the second consecutive week, marking the first such reduction since mid-November, as reported by energy services company Baker Hughes (BKR.O).
The report, released on Thursday, noted a decrease of three rigs, bringing the total to 620 as of December 21, the lowest count since mid-November.
The total rig count now stands at 159 rigs, or 20%, lower than at the same time last year. Specifically, the number of oil rigs decreased by three to 498, the lowest since mid-November, while the count of gas rigs increased by one to 120, reaching its highest point since mid-September.
Baker Hughes issued the report a day earlier than usual due to the Christmas holiday weekend.
Enverus, another data provider, reported a slight increase of one rig in the week ending December 20, totalling 676 rigs. However, this number is still about 3% lower than last month and 22% lower year-over-year.
U.S. oil futures have declined approximately 7% this year, following a 7% gain in 2022. In contrast, U.S. gas futures have dropped around 42% this year after a 20% increase last year.
Despite the downturn in prices and a reduction in operational rigs, U.S. oil and gas production is expected to reach record highs in 2023 and 2024, as companies complete existing wells.
The number of drilled but uncompleted (DUC) wells has fallen to a record low of 4,415 in November, the lowest since federal energy records began in December 2013.
