In August, U.S. energy companies reduced the count of active oil rigs for the ninth consecutive month. Simultaneously, there was a drop in the combined oil and gas rig count for the fourth month, as reported by the energy services company Baker Hughes on Friday.
As of the week ending August 25, there was a decline in the oil and gas rig count by 10, marking it at 632, the lowest since February 2022. This represents a 17% decrease, or 133 rigs, compared to the same period last year, according to Baker Hughes.
The number of U.S. oil rigs declined by eight this week to 512, a number not seen since February 2022. Gas rigs saw a reduction of two, settling at 115, their lowest number since January 2022.
In the prominent Permian region of West Texas and eastern New Mexico, drillers decreased the number of rigs by seven, resulting in a total count of 320, the lowest since March 2022. This reduction in the Permian area represents the most significant weekly drop since June 2020.
Meanwhile, in the Haynesville shale spanning Arkansas, Louisiana, and Texas, the gas rig count fell by two, reaching 41, a figure not observed since December 2020.
Overall, during August, there was a reduction of 32 oil and gas rigs, marking the fourth consecutive monthly decline. The decline of 17 oil rigs in August signifies the most extended reduction sequence since November 2019 when the count decreased for 12 straight months.
