U.S. energy companies reduced the count of active oil and gas rigs for the eighth consecutive week, according to a report from Baker Hughes released on Friday.
The count for oil and gas rigs, a precursor to upcoming production levels, dipped by one to 631 for the week ending Sept. 1. This count is the lowest observed since February 2022. The number of oil rigs remained steady at 512 this week, marking its lowest since February 2022. Conversely, gas rigs decreased by one to 114, representing their lowest count since January 2022.
For the year, U.S. oil futures have witnessed a 6% rise, following a 7% gain in 2022. On the other hand, U.S. gas futures have seen a sharp decline of around 37% this year, even after an increase of approximately 20% the previous year.
Data released this week revealed that U.S. crude oil production surged in June, approaching its pre-pandemic record high. In contrast, gas production decreased from its highest level in May, despite reaching peaks in major gas-producing states like Texas and Pennsylvania.
However, the rate of industry growth is witnessing a decline due to softer price points.
Following the surge in oil prices in June 2022 caused by Russia’s incursion into Ukraine, the number of oil rigs increased until late November. Post that period, it has decreased roughly by 18%. Similarly, the gas rig count has seen a reduction of around 30% since its March peak.
