U.S. Rigs Face Significant Drop Amid Cuts

U.S. Rigs Face Significant Drop Amid Cuts

Baker Hughes announced that U.S. energy firms have cut 11 oil rigs during the week ending on May 19, the biggest cut in oil rigs since September 2021, Reuters reported.

The report elaborated that U.S. oil rigs fell by 11 to 575 during that week, which was their lowest since June 2022. However, gas rigs remain steady at 141.

Moreover, the oil and gas rig count hit its lowest since May 2022, falling by 11 to 720. Most of the cuts were in Texas, with the total count dropping by nine to 355, it lowest point since May 2022 according to the report.

Meanwhile, in New Mexico, the count increased by one to 109, marking its highest level since February.

The number of rigs operating in the Eagle Ford shale in Texas fell by three to 59, the lowest number since April 2022. In the Permian, the state also lost four rigs, bringing the overall number there down to 349, the lowest since March.

U.S. oil futures were 11% so far this year after gaining about 7% in 2022. U.S. gas futures, meanwhile, have plunged about 42% so far this year after rising about 20% last year.




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