U.S. drilling rigs decline for the second week in a row
According to Webangah News quoted by Mehr News Agency According to Reuters, Baker Hughes Company announced in a report that the number of active oil and natural gas rigs of American energy companies in the week ending September 27 (Friday, 6th of Mehr) for the second week in a row decreased.
According to this company’s report on Friday, the number of oil and gas rigs, which is considered the primary sign of future production, decreased by one to 587 in the week ending September 27. The device received, which is the lowest level since early September.
According to Baker Hughes, the total number of rigs is still 36 units or 6% less than the same period last year.
The number of oil rigs in the United States decreased by 4 to 484 units in the mentioned week, while the number of gas rigs in this country increased by one to 99 units.
This is the first time since mid-August that drilling companies have reduced the number of oil rigs, which is the largest weekly reduction since late June.
Despite the weekly decline, drilling companies increased their number of oil rigs for the first time since July 2022 for three consecutive months.
Drilling companies increased the number of oil and gas drilling rigs by 6 in the third quarter of this year, which is the first quarterly increase since 2022.
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The number of US oil and gas rigs will decrease by about 20% in 2023 after increasing by 33% in 2022 and 67% in 2021. The decrease in the price of oil and gas and the increase in the cost of labor and equipment due to the increase in inflation and the companies’ focus on paying off debt and increasing the return of shareholders’ capital instead of increasing production are among the factors of reducing the number of rigs.
The crude oil price of the American WTI index has decreased by about 4% in 2024, after a decrease of about 11% in 2023. After a 44% drop in 2023, the price of American gas futures has increased by 16% since the beginning of 2024.
According to the latest outlook report of the US Energy Information Administration, despite the drop in oil prices, drilling companies continue to increase the country’s daily crude oil production from an unprecedented amount of 12,900,000 barrels in 2023 to 13 million 300 thousand barrels in 2024 and 13 million 700 thousand barrels in 2025.
In the field of gas, after the monthly cash prices of gas in the American Henry Hub index in the state of Louisiana in March dropped to the lowest price in the last 32 years, a number of producers They reduced investment in drilling activities.
According to the report of the US Energy Information Administration, the decrease in drilling will reduce the daily production of US gas from an unprecedented figure of 103.8 billion cubic feet in 2023 to 103.4 billion cubic feet. It will be in 2024, in which case it will be the first annual production cut since fuel demand plummeted in 2020 due to the outbreak of the disease corona will be.
